European stocks fall to one-week low on trade and political concerns

European shares fell on Thursday morning, extending losses for the second consecutive session, the lowest level in a week as investors' risk aversion due to concerns over the US-China trade war, as well as mounting concerns about the political situation in Europe ahead of the European Parliament elections, in addition to the pressure that the British Prime Minister Theresa May faces in order to resign.

As of 10:55 GMT, Stoxx Europe 600 fell 1.6%, the lowest level in a week, and the index ended yesterday's session by less than 0.1%, due to concerns about recent developments of the trade war between the United States and China, and the uncertainty that surrounds Britain's exit from the European Union.

Stoxx Europe index fell on Thursday morning to continue its losses for a second consecutive session, hitting its lowest level in a week, with most of the major bourses and sectors in the red zone.

The automotive sector was the top loser in Europe, with a drop of more than 3%, followed by the technology sector, falling by 1.5%, after renewed concerns over the US-China trade war.

The US government said it would impose trade restrictions on the Chinesse giant, Huawei Technologies, as of August 19, as Huawei's spending was about $70 billion to buy components in 2018, of which about $11 billion was allocated to US companies products.

S&P 500 futures fell by more than 1.1%, and the index ended yesterday's session on Wall Street down by 0.3%, the third loss in the last four sessions.

Euro Stoxx 50 index fell by 1.7%. while in France, the CAC 40 index fell by 1.7%. with Germany's DAX shedding more than 1.8% to top the list of losing markets in Europe.

In London, the FTSE 100 fell 1.5%, as concerns over the Brexit surged, especially after main allies of Theresa May resigned on Wednesday, as May is expected to resign by next Friday, According to Times magazine.