ISTANBUL 

European stock markets closed Monday with losses, except for Italy, while investors continued to focus on the ongoing trade negotiations between the EU and the US.

The pan-European Stoxx Europe 600 index fell 0.42%, or 2.26 points, to close at 541.37.

Germany's DAX 40 fell 0.51% to 23,909.61 points, while the UK's FTSE 100 index lost 0.43% to 8,760.96.

France's CAC 40 index decreased 0.33% to 7,665.91 points.

On the other hand, the FTSE MIB 30 index in Italy bucked the trend, rising 0.13% to 39,792.22.

Meanwhile, shares of German pharmaceutical and chemical company Bayer AG fell more than 5.3% due to news about the glyphosate dispute in the US.

The trade negotiations between the US and EU are still ongoing, as the EU seeks to conclude the talks with a better deal by the tariff deadline of July 9.

On Friday, reports that a deal could be reached before July 9 to avoid an economically damaging escalation in the tariff dispute were in the European press, while France said it would prefer a good deal at a later date rather than a bad deal for the EU.

Also, the German Chancellor Friedrich Merz stated Thursday that he wishes to see a "quick and simple" trade deal with the US rather than a "slow and complicated" one, as the deadline for additional tariffs on the EU is nearing.

On the macroeconomic data side, annual inflation in Germany, which was 2.1% in May, eased to 2% in June.

The European Central Bank (ECB) stated Monday that it is changing strategy against continuous upward or downward fluctuations in inflation.

Announcing the results of the strategic review aimed at redefining the bank's main objective and the tools to achieve it, the ECB changed its monetary policy strategy while maintaining the inflation target of 2%.

The ECB's new five-year strategy pledges to react as strongly when inflation is too high as when it is too low.