European Stocks Slump on Trade Woes as Banks to Miners Slide

(Bloomberg) -- European equities fell in early Wednesday trading after the carnage on Wall Street spooked traders and as banking and mining shares slid.

The Stoxx Europe 600 Index dropped 1.2 percent in the opening minutes. HSBC fell 1.4 percent, while Shell declined 1.6 percent. Shire jumped as much as 4.2 percent after Takeda shareholders approved the $62 billion acquisition of the U.K. drugmaker.

Investors are carefully watching U.S.-China trade developments after Beijing said it will start to quickly implement specific items where there’s consensus with the U.S. and will push forward on trade negotiations within the 90-day timetable. The S&P 500 Index fell 3.2 percent on Tuesday, the most in almost two months, on trade war fears and on flattening yield curve concerns. Traders are also eyeing Brexit deal negotiations as U.K. Prime Minister Theresa May is locked in a power struggle with the British Parliament.

U.S. stock markets are closed today for a national day of mourning to honor former President George H.W. Bush.

To contact the reporter on this story: Ksenia Galouchko in London at kgalouchko1@bloomberg.net

To contact the editors responsible for this story: Blaise Robinson at brobinson58@bloomberg.net, Paul Jarvis

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