There isn't too much notable action for stocks in Europe to kick start the new week. The DAX is up 0.1% while the CAC 40 is down 0.2%, reflecting a more mixed and indecisive mood with little appetite in general. The changes are light for the most part with the IBEX also down just 0.1% and UK FTSE up 0.1%. Italy's FTSE MIB is the main laggard, down 0.8%, but that owes much to the plunge in Stellantis after the carmaker posted a first half net loss of €2.3 billion as tariffs begin to bite.In the bigger picture, European stocks will be eyeing US-EU trade talks more than anything else this week. With no deal still in sight, the EU is already preparing retaliatory tariffs against the US with both sides set to lock horns again on 1 August.The EU is targeting a tariffs response of approximately €72 billion worth of US goods. The breakdown shows that they are going to hit back at aircraft (€11 billion), machinery (€9.4 billion), autos (€8 billion), and alcohol (€1.2 billion) mostly among other things.If both sides are to escalate things again, that won't bode well for the outlook of regional equities.Coming up later this week, we do have the ECB policy decision as well to contend with. However, the central bank is widely expected to reaffirm their pause mode all through the summer. As such, the meeting should be a non-event more so than anything else.As such, that puts much - if not all - the focus on trade talks in terms of dictating market sentiment for the week ahead.Head on over to investingLive (formerly ForexLive) to get in on the know! This article was written by Justin Low at investinglive.com.