European stocks lose more than 2% after Trump renewed trade war fears

Economies.com
2019-08-02 11:23AM UTC

European shares tumbled more than 2% in morning trading on Friday in the last session of the week, with the first loss in the last three sessions, as open sales accelerated in most sectors related to the global trade, after President Donald Trump renewed fears of the trade war Between the United States and China.

 

As of 10:45 GMT, Stoxx Europe 600 index lost more than 2.3%, and the index ended higher by 0.5% yesterday, the second daily gain in a row, on strong performance for banks and financial companies.

 

The index fell broadly on Friday morning for the first time in the last three sessions, with all of Europe's major exchanges and sectors in the red zone.

 

The Mining and Core Resources sector was the top loser in Europe with a drop of more than 4%, followed by the auto industry with a 3.5% fall, as those sectors are more sensitive to global trade news.

 

Sell-off in those sectors accelerated after US President Donald Trump abandoned a trade truce between the world's two largest economies.

 

Trump said via Twitter that he will impose a 10 percent tariff on China's remaining $300 billion in imports from Sept 1st.

 

Standard & Poor's 500 futures fell 0.6%, the lowest level in five weeks ahead of the opening of the official trading session on Wall Street, and ended yesterday's index down by 0.9%, the fourth daily loss, respectively.

 

In Europe, the Euro Stoxx 50 index fell by 2.4%. In France, the CAC 40 index fell by 2.6% to top the list of losing markets in Europe.While in Germany, the DAX fell by 2.4%, and in London, the FTSE 100 lost more than 1.6%.

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