European stocks dip on U.S. tariff proposals; Akzo Nobel plunges

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European stocks dipped on Wednesday, as investors weighed U.S. proposals for sweeping new tariffs on 60 countries.

The pan-European Stoxx 600 index was down 0.5% by 1:10 p.m. in London (8:10 a.m. E.T.), with most regional sectors in the red, and major bourses in London, Paris, Frankfurt and Milan all lower.

Akzo Nobel was last trading down 18% after a proposed takeover by Nippon Paint and Sherwin-Williams fell through.

Akzo Nobel, whose brands include Dulux, had previously rejected a joint cash takeover offer worth 73 euros ($85) per share.

AkzoNobel said at the time that the offer "did not come close" to adequately reflecting its value and long-term prospects, adding that the plan offered "insufficient deal certainty" over the separation of the business, with its shareholders "not adequately safeguarded."

On Wednesday, the company took note of a statement from Nippon Paint and Sherwin-Williams confirming that they were no longer interested in pursuing a public offer.

In other corporate news, Zara owner Inditex updated investors on its fiscal first-quarter earnings on Wednesday. The stock was last trading 3.8% higher.

Sales at the Spanish retail group grew 5.8% from the previous year, coming in at 8.7 billion euros ($10.1 billion) to meet analysts' expectations. Net profit jumped 5.4% year-on-year to reach 1.38 billion euros, in line with estimates.

Shares in Partners Group plunged 17% after the Zurich-headquartered global private markets giant said it was restricting investor withdrawals in one of its private equity funds, mirroring recent redemption pressures in the U.S. private credit space.

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Tariff proposals

Meanwhile, the Office of the U.S. Trade Representative has floated additional tariffs of up to 12.5% on 60 trading partners over their alleged failure to ban goods made with forced labor. The economies in line to be targeted by the measures include China, the European Union and Japan.

"The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field," said U.S. Trade Representative Jamieson Greer.

An EU spokesperson described the reasoning behind the latest barrage of U.S. tariffs as "unjustified."

"On the EU side, we are on track to ensure implementation of our Joint Statement tariff commitments by the end of June," they added in comments reported by Reuters.

Investors are also continuing to monitor developments in the U.S.-Iran war after tensions escalated overnight, with Washington accusing Tehran of launching fresh attacks despite a ceasefire remaining in place.

President Donald Trump said in an interview with the New York Post's "Pod Force One" podcast that Iran had "agreed" not to have a nuclear weapon, but added that the government in Tehran could still "change their mind."

Economic data due today includes a Spanish PMI print, Russian unemployment and business confidence figures, and Austrian GDP data.

On Wall Street, U.S. equity futures were mixed. Futures tied to the Dow Jones Industrial Average last seen 0.3% lower, with S&P 500 futures down almost 0.1%, while Nasdaq futures were more than 0.2% higher.

— CNBC's Anniek Bao contributed to this report.