Silvia Amaro, Chloe Taylor
European Markets: FTSE, GDAXI, FCHI, IBEX
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%.
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.