European stocks may face downward pressure as investors digest President Trump’s threats of new tariffs on imports from Mexico and the EU. Mexico criticized the move as unfair but remains optimistic about a potential trade deal. The EU has delayed its countermeasures until early August to allow for more negotiations. German and French leaders are urging the bloc to defend European interests. Traders are gearing up for earnings season, with U.S. banks like JPMorgan Chase and Bank of America set to report this week. Data on U.S. inflation will also be closely watched. Asian markets were mixed, with China’s rare earth exports showing growth. The dollar remained strong, while oil prices edged higher on anticipation of new U.S. sanctions on Russia. In the U.S., stocks retreated from record highs on Friday following Trump’s tariff threats, with the Dow, Nasdaq, and S&P 500 all closing lower. European stocks also ended the week on a negative note due to renewed trade tensions.

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