European Markets Close Sharply Lower on Trade Concerns
By the end of trade Monday, the pan-European Stoxx 600 was provisionally 2.02 percent lower for the session with every sector in the red. The FTSE 100 closed lower by 2.26 percent.
Autos were among the worst performing sectors, down by 2.34 percent, as a result of the rising tensions in trade. On Friday, President Donald Trump threatened to apply new duties on European carmakers. The European Union has said that it would respond with further U.S. tariffs if Trump fulfilled his threat.
Basic Resources was the biggest faller, however. The basket of mining stocks listed in Europe was down almost 3.76 percent as trade war fears persisted.
Another stark Brexit warning to the U.K. government arrived from big business. Just days after Airbus announced it could reduce British operations., the German automaker BMW said Brexit could force U.K. plant closures. BMW employs around 7,000 people in the U.K.
Looking across the European benchmark, Ambu rose about 6.6 percent, after JP Morgan gave it an overweight rating.
Quilter shares finished up by 0.87 percent on its first trading day on the London Stock Exchange. The wealth management division of the financial services group Old Mutual listed at a price of 145 pence a share.
At the other end of the index was Prysmian, closing off by more than 9.5 percent following a profit warning. The U.K.’s largest estate agent group, Countrywide, saw its shares falling by more than 28 percent, after issuing its second profit warning this year.
Meanwhile, German Chancellor Angela Merkel said she would be looking to do a direct deal with different European countries to solve the migration program, given that they did not manage to reach a European-wide agreement during a meeting on Sunday. Merkel needs to address the high level of migrants coming to Germany amid fierce opposition within her inner circle that could threaten her leadership.
In Turkey, Tayyip Erdogan claimed victory on Sunday after a presidential election. The head of the country’s electoral body said Erdogan had an absolute majority.
The Ifo business climate survey published Monday showed that German companies are at their least confident in more than a year. The business climate index dropped to 101.8, the lowest level seen since May 2017
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courtasy: CNBC
photo: Valas News
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