Quick overview

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European stocks fell from two-month highs due to a decline in Julius Baer shares following the Swiss bank’s disclosure of credit portfolio charges. Investors watched US trade developments and the tax bill debate.

Auto and retail stocks caused the pan-European STOXX 600 to plummet after Julius Baer announced the replacement of its chief risk officer and disclosed a 130 million Swiss franc ($156.36 million) charge from a credit portfolio review; the lender’s shares fell 5.6 percent.

After the British sportswear retailer reported a 2 percent decline in first-quarter underlying sales and warned that higher prices in its important US market could impact customer demand, JD Sports fell 8 points to the bottom of the STOXX 600.

Investors were further alarmed when data revealed that British inflation in April exceeded forecasts in several crucial areas that the Bank of England closely monitors, making its path toward gradual interest rate cuts more difficult.

As US President Donald Trump’s 90-day tariff reprieve draws to a close, investors are concerned about the lack of progress on trade agreements and a comprehensive tax bill that has sparked worries about the country’s financial stability.

German chipmaker Infineon saw a 1.7% increase in value following its announcement that it would collaborate with Nvidia to create chips for new power delivery systems inside artificial intelligence data centers.

Marks and Spencer saw a 3.3 percent decline following the British retailer’s announcement that a “highly sophisticated cyber” attack would cost it approximately 300 million pounds ($403 million),