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European stocks slumped on Monday, reacting after a three-day hiatus to increased U.S.-China trade tensions and a downbeat U.S. tech outlook.
The German DAX DAX, -3.00% dropped 2.9% and the French CAC 40 PX1, -3.55% fell 3.4%.
The U.K. FTSE 100 UKX, -0.05% inched up 0.1%, as the London Stock Exchange was open on Friday, as that market had captured the tariff threat and the response to Apple and Amazon’s results.
The reaction came as the U.S. threatened to put tariffs on China in response to the coronavirus outbreak. Secretary of State Mike Pompeo on Sunday said there was “enormous evidence” the virus originated from a lab as opposed to being transmitted from animals.
Data released Monday showed how damaging the coronavirus lockdowns have been to the economy. The Italian manufacturing purchasing managers index fell to a record low of 31.1 in April, and Spain’s manufacturing PMI dropped to 30.8, on scales where any reading below 50 indicates deteriorating conditions.
Of stocks on the move, shares of Thyssenkrupp TKA, -15.90% slumped 16%as the Financial Times reported that Cinven and Advent are seeking other investors for the 17.2 billion euro deal for Thyseenkrupp’s elevators business, which was the biggest European buyout deal in a decade.
Telefonica TEF, +3.20% shares rose 3% after saying it’s in talks with Liberty Global LBTYA, +14.72% on merging their U.K. telecoms arms, O2 UK and Virgin Media.
Futures on the Dow Jones Industrial Average YM00, -1.03% fell 191 points, with the caution displayed by Berkshire Hathaway Chairman and CEO Warren Buffett weighing on sentiment.
