Europe Follows Asia Lower, With Macro Data Dictating the Agenda

(Bloomberg) -- European shares tracked Asian markets lower, after data for China during the weekend signaled a weakening of demand in November.

The Stoxx Europe 600 fell 0.7 percent in early trading. Basic resources was the worst performer, dropping 1.6 percent amid fears of escalating trade tensions amid signs that China’s economy remains under pressure. The next chapter in the trade anxiety came with Beijing summoning the U.S. ambassador to protest the arrest of Huawei Technologies Co.’s Chief Financial Officer Meng Wanzhou.

“Market participants are clearly focusing on a possible escalation in the trade war between the U.S. and China on the back of the Huawei CFO arrest,” said Stephane Ekolo, equity strategist at TFS Derivatives.

“That being said, tomorrow’s Brexit vote will also be of particular interest, so will any potential Italian revised budget,” Ekolo said. “All in all, macro development will take center stage today, in my opinion.”

To contact the reporter on this story: Hanna Hoikkala in Stockholm at hhoikkala@bloomberg.net

To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net, Jon Menon

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