Jerónimo Martins Experiences Over 5% Decrease, According to PSI's Report
European stock markets experienced a notable decline on August 1, 2025, as investors grappled with the announcement of new trade tariffs by US President Donald Trump. The Euro Area Stock Market Index (EU50) dropped approximately 1.7%, with similar decreases in national indexes such as the CAC 40 (-1.6%) and DAX 40 (-1.3%).
The primary catalyst for this downturn was the announcement and imminent implementation of a 30% tariff on EU goods to the US, effective from August 1 but postponed to August 7. This unexpected move has raised concerns about further trade tensions and added to previously existing tariffs, leading to increased uncertainty on trade costs and economic growth prospects in Europe.
J.P. Morgan economists forecasted a moderation in GDP growth in the second half of 2025 due to both direct and indirect effects of tariffs. They expect 0.5% annualized growth in Q3 and 0.75% in Q4 2025, down from 0.9% in the first half. This subdued outlook weighs on investor sentiment and contributes to the stock declines.
In addition, the market is likely cautious ahead of upcoming economic data releases, which could provide further clarity on how these trade tariffs and other economic factors are affecting the Eurozone economies.
Notable declines were seen in shares of Ibersol, BCP, Corticeira Amorim, Mota-Engil, EDP, EDP Renováveis, and Jerónimo Martins. The PSI, an index on the Lisbon Stock Exchange, fell 0.82% to 7,648.75 points, while the Lisbon Stock Exchange itself traded lower. Jerónimo Martins shares dropped 5.14% to 20.30 euros, despite announcing a 6.6% increase in net result for the first half of the year, totalling 269 million euros. EBITDA for Jerónimo Martins grew 10.3% to 1.148 million euros in the same period, and sales rose 6.7% to 17.396 million euros.
The Brent crude oil reference in Europe for October delivery is falling to 71.66 dollars. The official employment report for July will be published in the US today, and Wall Street futures continue to fall in the US. The consumer price index (CPI) will be released in the eurozone today, and the euro is advancing to 1.1428 dollars in the Frankfurt foreign exchange market.
In a separate development, US President Donald Trump signed two executive orders on tariffs, one for Canada and one for the rest of the world. The tariff adjustment increased the tax to over 30% in countries with no agreement, such as Switzerland, Serbia, and Myanmar. The new high for the euro since September 15, 2021, was 1.1789 dollars on July 2.
NOS shares advanced 0.14% to 3.63 euros today, bucking the overall trend. The S&P Global will release the manufacturing PMI in the UK today.
In summary, the new US tariffs have caused a notable decline in European stock markets, combining trade uncertainty with expected slower economic growth to weigh on equities as investors await more data.
The finance sector, particularly those with significant business operations in Europe, may face increased costs due to the new tariffs imposed by the US, causing investor unease and potentially impacting business decisions.
The escalating trade tensions, combined with the introduction of tariffs and the associated uncertainty, have led to a lowered growth forecast by J.P. Morgan economists for the second half of 2025 in the Eurozone, affecting economies and business prospects.
