European stocks drop to 7-week low after US-China trade talks fail

European shares fell in Monday's opening trades, their first session of the week, to drop to a seven-week low, resuming losses that were temporarily halted in the previous session after a day of respite, this comes on investors risk aversion especially after the collapse of trade talks between the United States and China.

As of 11:05 GMT, Stoxx Europe 600 fell 0.5% to its lowest level since April 1, as it ended Friday's session up 0.3%, after losing 1.7% in the previous session.

Over the past week, Stoxx Europe 600 lost 3.4%, marking the biggest weekly loss this year, driven by global trade concerns.

The Index fell on Monday morning in the first session of the week, hitting its lowest level in seven weeks, with most major stock exchanges and sectors in the red zone.

The automaker sector is the top loser in Europe, with a drop of more than 1.5% as the US and China tariff crisis worsens.

The trade negotiations between the world's two largest economies reached a stalemate on Sunday, with Washington demanding promises of concrete changes in Chinese law while Beijing said it would not swallow any "bitter fruit" that harmed its interests.

The US-China trade dispute escalated on Friday after Washington raised tariffs on Chinese goods worth $200 billion and Beijing vowed to respond to the US escalation but gave no details.

S&P 500 futures fell more than 1.4%. The index ended Friday's session on Wall Street up 0.4%, its first gain in five sessions, recovering from a one-and-a-half month low.

Euro Stoxx 50 fell by 0.5%. As in France, the CAC 40 index fell 0.55%. with Germany's DAX index shedding 0.8%, to lead the list of losing markets in Europe, with London's FTSE 100 index dropping more than 0.1%.