By Barbara Kollmeyer, MarketWatch , Emily Horton
European stocks were in the red on Tuesday, with trade tensions between the U.S. and China and regional politics steering investors away from equities, moves that were in step with global markets.
How are the markets performing?
The Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP -3.26% fell 0.6% to 356.15, after closing up 1.2% on Monday.
The German DAX /zigman2/quotes/210223310/lastsale DAX -2.46% fell 0.4% to 11,302.25, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -4.23% index lost 0.5% to 4,969.35 and the FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -5.25% lost 0.6% to 6,994.21. The FTSE Italy index /zigman2/quotes/210598024/delayed IT:I945 -3.15% dipped 0.5% to 19,138.32.
The pound /zigman2/quotes/210561263/realtime/sampled GBPUSD +1.9912% fell to $1.2747 from $1.2811 late in New York on Monday, The euro /zigman2/quotes/210561242/realtime/sampled EURUSD +0.9425% was mostly unchanged at $1.1325.
What is driving stocks?
A mixture of global political events overshadowed European stocks. U.S. President Donald Trump reportedly suggested Monday that British Prime Minister Theresa May’s Brexit deal could threaten a U.S.-U.K. trade agreement, which pressured the U.K. currency.
In a separate interview with The Wall Street Journal , Trump said he was “unlikely” to hold off on higher tariffs for Chinese goods. The comments came ahead of a meeting between U.S. and Chinese leaders later in the week, which weighed on Asia-Pacific stocks and set up Wall Street for losses.
In Italy, lawmakers said they were sticking to previously stated 2019 budget goals, but were leaving open the possibility of cutting the country’s budget deficit target.
What stocks are active?
Oil stocks fell after Monday’s rebound. BP PLC /zigman2/quotes/207305210/lastsale BP -8.48% fell 0.5% and Royal Dutch Shell PLC /zigman2/quotes/205095589/lastsale RDS.A -9.42% slipped 1%. Resource stocks also took a hit with miners, Rio Tinto PLC /zigman2/quotes/202627887/lastsale RIO -4.03% /zigman2/quotes/208934945/delayed UK:RIO -5.92% down 2% and Glencore PLC /zigman2/quotes/201400686/delayed UK:GLEN -6.16% off 1.6%. Sandvik AB /zigman2/quotes/201139080/delayed SE:SAND -4.79% fell over 2%.
Drug stocks were leading the decliners, with Novartis AG /zigman2/quotes/203286410/delayed CH:NOVN -1.20% /zigman2/quotes/203243705/lastsale NVS -0.58% down 1% and Bayer AG /zigman2/quotes/210533053/delayed DE:BAYN -2.60% off 1.2%. Bayer and Loxo Oncology Inc. said Tuesday that they received accelerated approval from the U.S. Food and Drug Administration for a joint oncology drug.
Among banking names, BBVA SA /zigman2/quotes/209653399/delayed ES:BBVA -5.34% /zigman2/quotes/204078760/lastsale BBVA -7.46% fell over 4% and Metro Bank PLC /zigman2/quotes/206818035/delayed MTRO +9,900% fell by 2.9%.