European stocks slide amid Le Pen political ban, Trump tariff concerns

European stock markets closed lower on Monday, weighed down by mounting political uncertainty in France following a court ruling against far-right leader Marine Le Pen and renewed concerns over US tariffs under President Donald Trump.

The Paris Criminal Court sentenced Le Pen to four years in prison -- two suspended -- and imposed a five-year political ban, effective immediately, over corruption charges tied to her European Parliament activities. The court also fined her €100,000 and placed her under electronic supervision for two years. Eight former members of the European Parliament were also found guilty.

Le Pen, seen as French President Emmanuel Macron’s main political rival, had announced her candidacy for the 2027 presidential election. The verdict, delivered without waiting for the appeal process, triggered political unrest in France and increased the country’s risk premium amid ongoing budget deficit challenges.

The political shock, combined with fears over the impact of looming US tariffs, pressured markets across Europe.

Technology stocks led the decline, falling an average of 2.01%, while Europe’s banking index dropped 1.96%. Automotive shares suffered the steepest losses, down 2.6%, amid speculation surrounding Trump’s new tariffs on auto imports.

The broader pan-European Stoxx 600 index fell 1.51%, or 8.18 points, to close at 533.93.

Germany’s DAX 40 index lost 1.33%, falling 298.03 points to 22,163.49. The UK’s FTSE 100 slipped 0.88%, or 76.04 points, to end at 8,582.81.

France’s CAC 40 tumbled 1.58%, shedding 125.37 points to close at 7,790.71, while Italy’s FTSE MIB dropped 1.77%, ending the day at 38,051.99 — down 687.31 points.

Meanwhile, market instability and growing fears of a global trade slowdown have driven safe-haven assets higher. Gold prices surged past the $3,100 mark, reaching a record $3,127 per ounce. The metal has gained roughly 20% since the start of the year, when it was trading at $2,620.

The euro also weakened slightly, with the EUR/USD exchange rate down 0.12% at 1.081 as of 1800 GMT.