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Automakers, luxury stocks fall after Trump's new tariff

plans

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Oil shares up on higher prices

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Sanofi strikes deal to acquire Blueprint Medicines ( BPMC )

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Media stocks drop on report Meta to fully automate Ad

creation

(Updates after markets close)

By Purvi Agarwal and Ragini Mathur

June 2 (Reuters) - European shares began June on a dour

note as markets grappled with U.S. President Donald Trump's new

tariff plans that threatened to reignite a fresh wave of global

trade tensions.

The continent-wide STOXX 600 slipped 0.1% on

Monday, after recording about a 4% gain in May.

Late on Friday, Trump said he planned to increase tariffs on

imported steel and aluminium to 50% from 25%, to which the

European Union said it was prepared to retaliate.

Steel companies as ArcelorMittal and Aperam

pared some losses and closed marginally lower.

The automobile sector, however, bore the brunt of

the trade jitters, falling 2.1%, the most among sectors.

Milan-listed Stellantis ( STLA ) down 5%. Mercedes-Benz

, BMW and Volkswagen fell

between 1.9% and 2.7%.

Even Luxury stocks, reliant on global exports dropped, with

the broader gauge was down 0.8%.

An index measuring volatility in the market climbed

4.3% - at a one-week high.

"The market was definitely in what we would call risk off

mode," said Steve Sosnick, chief market analyst at Interactive

Brokers.

"But each piece of rhetoric is having less of an effect than

the prior ones because markets have mostly learned to shrug it

off. Yet it cannot be shrugged off entirely."

Data-wise, European manufacturing moved closer to

stabilization in May, according to HCOB Eurozone PMI data.

However, Europe's largest economy, Germany, remained the

weakest performer among the big euro zone members with a PMI of

48.3.

Germany's DAX closed 0.3% lower.

Oil stocks outperformed, with the sector jumping

1.4%, as crude prices surged after OPEC+ announced a

smaller-than-feared production increase for July.

Some of the UK's defence manufacturers gained after the news

that Britain will expand its nuclear-powered attack submarine

fleet.

Babcock International Group ( BCKIF ) and QinetiQ Group

advanced 8.2% and 4.5% respectively.

In Poland, stocks were flat. Opposition candidate

Karol Nawrocki narrowly won the presidential election, dealing a

significant blow to the centrist government's pro-European

agenda.

Media stocks such as France's Publicis Groupe and

WPP ( WPP ) fell 3.8% and 2.8% respectively. The Wall Street

Journal reported that Meta Platforms ( META ) aimed to fully

automate ad creation with AI by the end of next year.

Among other stocks, Sanofi agreed to buy

U.S.-based Blueprint Medicines Corporation ( BPMC ), paying $129

per share, representing an equity value of approximately $9.1

billion.

Shares in the French pharma group fell 1.8%.

This week, all eyes will be on the European Central Bank's

interest rates on Thursday, with money market traders are almost

fully pricing in a quarter-point cut.

Insights from ECB President Christine Lagarde are due at

1730 GMT.