European shares fall as banks, mining stocks losses weigh

By Sukriti Gupta and Shashwat Chauhan

July 4 (Reuters) - European shares ended lower on Friday as losses in banks and mining-related stocks weighed, with focus now shifting to the July 9 deadline for trading partners to reach a deal with the United States.

The pan-European STOXX 600 index .STOXX closed 0.5% lower, clocking a marginal weekly fall.

Other regional indexes also declined, with Germany's DAX .GDAXI down 0.6% and France's CAC 40 .FCHI losing 0.8%. Spain's benchmark .IBEX lagged with a 1.5% fall.

Basic resources .SXPP lagged the major STOXX sub-sectors, down 1.4% as prices of base metals including copper came under pressure.

Euro zone banks .SX7E slid 1,3%, with Spain's BBVA BBVA.MC topping declines at a 2.6% fall.

Helping limit losses, healthcare .SXDP advanced 1.1%. Drugmakers Novartis NOVN.S, Roche ROG.S and Novo Nordisk NOVOb.CO - some of the biggest weights on the STOXX 600 - all clocked gains.

Shares of French spirits makers Pernod Ricard PERP.PA, Remy Cointreau RCOP.PA and LVMH LVMH.PA - the owner of Hennessy - all finished well off their session lows after China spared major cognac producers from new duties on EU brandy, provided they sell at a minimum price.

In the latest on tariffs, U.S. President Donald Trump said that Washington will start sending letters to countries on Friday specifying what tariff rates they will face on imports to the United States.

With Trump's 90-day pause on higher U.S. tariffs ending next week, investors have taken a cautious stance as several large trading partners, including the European Union, are yet to secure trade deals.

The EU is pushing for an "agreement in principle" with the U.S. ahead of the deadline, seeking immediate tariff relief in key sectors as part of any trade deal.

"Talks are also ongoing on a range of non-tariff issues ... The result is likely to be a two-page 'agreement in principle' that will kick many cans down the road while keeping the existing tariffs in place," J.P.Morgan analysts said in a note.

Also on the radar this week was Trump's tax-cut legislation, which cleared its final hurdle in the U.S. Congress on Thursday, and is expected to be signed into law later in the day.

Despite a roaring start to the year, European shares fell behind the U.S. S&P 500 .SPX on year-to-date basis on Friday, driven dominantly by tech shares.

The STOXX 600 was last up 6.6% for 2025, compared with the 6.7% advance for the S&P 500.

Among individual stocks, Germany's Rheinmetall RHMG.DE advanced 3.3% after JP Morgan and Deutsche Bank raised their price targets on the defence contractor.