Europe’s markets opened weaker on Monday as investors balanced fresh corporate warnings with policy shocks from the United States.
The pan-European Stoxx 600 index slipped 0.2% shortly after the opening bell, while FTSE 100 was flat with 0.07% gains.
Autos led the declines, while traders also reacted to US President Donald Trump’s abrupt decision to impose a $100,000 fee on H-1B visa applications, adding pressure to multinational hiring strategies and global investment confidence.
Autos drag on Stoxx 600
The Stoxx Europe Automobiles and Parts index fell 2.3% in early deals, marking the biggest drag on the wider benchmark.
Porsche lost about 6.7% after cutting its 2025 profitability target and delaying electric car launches due to weak demand.
The profit warning reverberated through the sector, sending Volkswagen, Porsche’s largest shareholder, down 5.5%.
The combined losses weighed heavily on the broader European market, signalling renewed concerns over the pace of the industry’s shift to electric vehicles and its potential impact on future revenue growth across the region.
Trump policy adds to pressure
Investor sentiment was further unsettled by the Trump administration’s new order to raise the H-1B visa application fee to $100,000.
The measure took effect on Sunday and forms part of efforts to shield US jobs. Tech firms, which rely heavily on overseas hires, face higher operating costs as a result.
The abrupt nature of the fee increase created uncertainty for multinational firms, forcing a reassessment of hiring plans. India, a major source of skilled labour for the US, criticised the move and warned of humanitarian disruption for families.
For markets, the policy added a fresh layer of geopolitical risk to corporate investment strategies, particularly in technology and outsourcing industries that employ large numbers of foreign workers.
Broader trading picture
Asia-Pacific equities traded mixed earlier in the day after China’s central bank left its loan prime rates unchanged for a fourth consecutive month. The one-year LPR stood at 3.45%, while the five-year rate stayed at 3.95%.
The move set the tone for a subdued session before Europe opened, with regional indices showing limited direction as traders weighed domestic monetary conditions alongside global developments.
Within the euro zone, investors awaited the flash consumer confidence estimate due at 3 p.m. London time.
The release was expected to provide another gauge of sentiment across the bloc, with traders already factoring in corporate updates, US policy changes, and the latest Asian data.
Markets respond to shocks
The sharp losses in autos combined with the sudden US immigration shift highlighted how corporate guidance and political measures can shape trading momentum.
With Porsche cutting forecasts and Washington imposing new costs on global firms, investors were left grappling with sector-specific headwinds and wider policy risks.
The session showed how European stocks remain sensitive both to internal challenges, such as weak electric vehicle demand, and to external shocks, including US political moves that alter investment flows and influence broader investor confidence across global markets.
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