European bourses traded lower Monday after U.S. President Donald Trump announced new tariffs against China.
The pan-European Stoxx 600 was off by 0.15 percent with most sectors in the red. Autos were the worst-performing sector in early deals due to trade concerns.
Looking across the European benchmark, the Italian cable maker Prysmian was down by about 2 percent, after the rival firm Nexans issued a profit warning, Reuters reported. Cobham was leading the index, up by more than 7 percent after Morgan Stanley rose its outlook on the stock to overweight.
Market sentiment was being dominated by trade tensions between the U.S. and China with new tariffs on the table. More than 800 Chinese goods are due to get an extra 25 percent tariff starting on July 6. As a result, China has responded with a 25 percent tariff that will also be applied to certain U.S products starting on the same day.
In the corporate world, CYBG has agreed to buy Virgin Money for $2.26 billion, creating the U.K.’s sixth biggest bank. According to Reuters, the deal will see Virgin Money shareholders getting 1.2125 CYBG shares per Virgin Money share they hold.
Furthermore, Heineken announced it will invest $58.4 million this year to update its British pubs.
In the U.K., new forecasts from the British Chamber of Commerce showed Monday that the economy is on track to grow at its weakest rate since 2009, Reuters reported. This is due to the decision to leave the European Union, higher oil prices and concerns over a trade war.
In terms of data, the calendar is thin with only Italian balance trade numbers due at 9 a.m. London time.
And in terms of events, European central bankers are due to meet in Sintra, Portugal, for the European Central Bank Forum, where President Draghi is due to speak.