European stocks slump on trade, political worries

European stocks traded in the red Thursday morning amid ongoing U.S.-China trade worries and political uncertainty across the EU.

The pan-European Stoxx 600 was down by 0.7% in early deals with almost every sector in the red.

Auto stocks led the losses, down by more than 2.5%. This comes after renewed concerns over the trade relationship between the U.S. and China. The U.S. has said it will impose trading restrictions on Chinese telecoms giant Huawei from August 19. Of the $70 billion Huawei spent buying components in 2018, some $11 billion went to U.S. firms including Qualcomm, Intel and Micron Technology.

Banking stocks were also down, with Deutsche Bank falling more than 2.7%. Shareholders have gathered Thursday for its annual meeting with questions over the bank’s strategy and leadership.

Looking at other individual stocks, Daimler dropped more than 7% despite announcing a cost review, Reuters reported.

Back in Europe, politics are a central focus as voting in the EU elections begins in the U.K. and the Netherlands. Brexit uncertainty also continues to weigh, with pressure mounting on British Prime Minister Theresa May to resign.

Sterling slumped to $1.2607 on Thursday morning after May unveiled a “new” Brexit deal that is largely expected to be rejected by the U.K.’s Parliament.

Source: CNBC