(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.
U.S. President Donald Trump tweeted Sunday he may raise tariffs on Chinese goods and that the talks have been going too slowly for his liking. China is now considering delaying a trip by its top trade negotiators to Washington this week, according to people familiar with the matter.
“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.”
To contact the reporter on this story: Macarena Munoz in Madrid at mmunoz39@bloomberg.net
To contact the editor responsible for this story: Blaise Robinson at brobinson58@bloomberg.net
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