Euro-Area Shares Drop Most Since Early January on Trade Tensions
(Bloomberg) -- Euro-area shares tumbled on Monday, tracking a drop in Asian equities and U.S. stock index futures, as trade tensions between the U.S. and China heated up again. The U.K. market remained closed for a holiday.
The Euro Stoxx 50 fell 2 percent, the most since January 2, with the auto sector sinking 3.8 percent. The Stoxx Europe 600 was down 1.3 percent.
“The market had assumed nothing bad could happen with Brexit or the trade war so any negative development will certainly make for a shock in shares, specially after the big rally this year” Alfonso Benito, chief investment officer at Spanish asset manager Dunas Capital, said by phone. “The trade talks are a negotiation and Trump needs an agreement the same way China does so this is a way for Trump to put pressure but, at the end, they will need to reach some kind of agreement.”
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