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May 23, 2019

Markets I Europe Markets Closing Report I European stocks slide on trade worries; Royal Mail plunges to record low

Silvia Amaro, Chloe Taylor

European markets traded sharply lower Thursday amid ongoing U.S.-China trade concerns.

European Markets: FTSE, GDAXI, FCHI, IBEX

FTSEFTSE 100FTSE7239.53-94.66-1.29517818198
The pan-European Stoxx 600 was down by 1.5% with almost every sector in the red. All major bourses were in the red, with the French CAC and German DAX down 1.8% and 1.6% respectively.
The FTSE 100 in London also fell heavily, lower by around 1.6%.
Auto stocks led the losses among sectors, down by more than 3%. 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.
In corporate news, Deutsche Bank shareholders gathered Thursday for its annual general meeting, with questions over the bank’s strategy and leadership. Deutsche has been the source of much negative publicity in recent years — from settlements with the U.S. Department of Justice to weak earnings. Shares fell 3%.
Looking at other individual stocks, Royal Mail tanked to the bottom of the Stoxx 600 and hit a record low. Reuters cited one trader as saying there was a legitimate fear the privatized U.K. postal service could be renationalized, amid turmoil surrounding Prime Minister Theresa May’s government. The stock was down 11%.
Back in Europe, politics is a central focus as voting in the EU elections begins in the U.K. and the Netherlands.
In Britain specifically, Brexit uncertainty continues to weigh, with pressure mounting on the country’s leader to resign. Sterling slumped to $1.2648 Thursday after May unveiled a “new” Brexit deal that is largely expected to be rejected by the U.K.’s Parliament.

Source: CNBC

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