Stocks - Europe Weakens Over Trade Tensions; ThyssenKrupp Slumps

Stocks - Europe Weakens Over Trade Tensions; ThyssenKrupp Slumps  | May 04, 2020 08:57

Stocks - Europe Weakens Over Trade Tensions; ThyssenKrupp Slumps

By Peter Nurse - European stock markets slumped Monday, as investors returned from Friday’s May Day holiday to fresh tensions between the United States and China over the coronavirus crisis. 

At 3:55 AM ET (0735 GMT), the DAX in Germany traded 2.9% lower, France's CAC 40 down 3.5%, while the U.K.'s FTSE index traded flat, outperforming after having sold off during Friday’s session. 

U.S. Secretary of State Mike Pompeo said on Sunday there was "a significant amount of evidence" that the new coronavirus emerged from a Chinese laboratory, without making available any details. This followed Friday’s warning from President Donald Trump of retaliatory measures, including new trade tariffs, against China over the pandemic.

Worries that this spat may turn into another trade war, just a few months after the first round of the trade deal between the two powers was signed ending the last damaging conflict, are hitting risk appetite.

More bad news came from the latest estimate of Spanish factory activity, with the country’s manufacturing PMI falling to 30.8 in April from 45.7 in March, the biggest drop in one month since the records started in February 1998.

In corporate news, Thyssenkrupp (DE:TKAG) stock slumped 15% amid concerns over the deal to sell its elevators unit following a Financial Times report that Cinven and Advent are seeking other investors for the 17.2 billion euro deal, which was the biggest European buyout deal in a decade.

On the flip side, Telefonica (NYSE:TEF) climbed 2.3% after confirming Monday it has opened talks to merge its British mobile operator O2 with billionaire John Malone's Liberty Global’s Virgin Media network company.

Oil futures weakened amid fears of a trade war and despite the major producers beginning output cuts to offset a slump in fuel demand triggered by the coronavirus pandemic. At 3:55 AM ET, U.S. crude June futures traded 5.8% lower at $18.63 a barrel. The international benchmark Brent contract fell 1.7% to $25.98.

Elsewhere, gold futures rose 0.8% to $1,714.50/oz, while EUR/USD traded at 1.0931, down 0.5%.

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes


Download the App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors. is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.