European stock markets weak, Milan closes positively

European stock markets remain weak but reduce losses less than two hours before the close.

Milan turned positive, closing at 0.26%, London also up, while Paris lost 0.30%. Frankfurt was the worst performer, down 0.48%, penalized by the collapse of Porsche and its parent company Volkswagen, which both lost more than 6% after issuing a profit warning, a message telling the market that operating profit for the year will be lower than expected. This news weighed on the entire European auto sector, including Stellantis, which lost 2.62% on the Milan Stock Exchange. The defense sector, however, performed well, still buoyed by international geopolitical tensions; in Milan, Leonardo gained nearly 4%.

US indices are hesitant, looking ahead to a week packed with important macroeconomic data. Leading the way is the second-quarter GDP data, due Thursday, which will perhaps provide some initial insights into the economic impact of tariffs and the Trump administration's new trade strategy.