European shares are lower Monday, as investor sentiment is rocked yet again by ongoing trade war concerns. German political worries, despite the EU migration agreement last week, are also playing their part in weighing on the stock markets.
By 1325 BST, the EUROSTOXX 600 was trading 0.84% in the red, while the EUROSTOXX 50 had lost 0.66%. The German DAX, meanwhile, was 0.49% lower, the French fell 0.80% and the Spanish IBEX declined 0.80%.
Trade concerns remain
European stock markets followed their Asian counterparts lower Monday, as investors struggle to shrug off worries over US trade policies, including the tariffs President Trump’s administration has slapped on numerous trading partners.
The unease heightened after Canada’s reciprocal tariffs came into effect on Sunday. In addition, the EU has warned that if the US goes ahead with car import tariff hikes, then the EU will retaliate with its own.
Adding to those trade related woes was confirmation that the euro zone’s manufacturing sector lost further ground during June.
IHS Markit said earlier Monday that the Euro Zone manufacturing PMI fell to an 18-month low of 54.9 in June That was below the preliminary reading of 55.0 and down from May’s 55.0.
“The biggest concern is the extent to which export order book growth has cooled since the start of the year and could soon go into decline,” Markit’s chief business economist Chris Williamson said.
“The survey reveals mounting worries from companies relating to the impact of tariffs and trade wars, suggesting firms are bracing themselves for the potential for further export losses,” he added.
Against that trade news-heavy backdrop, there were some stock moves of note.
Among them was a decline in Tenaris shares after the steel pipe maker announced it was cutting 40 jobs at its Canadian Ontario steel pipe making plant as a direct result over concerns over the impact of US steel tariffs.
Airbus shares, meanwhile, were 1.97% lower at €98.28 following a Bloomberg report that the European plane maker looks set to miss its delivery targets for it’s A320neo.