- On Friday, Trade talks between U.S. and Chinese negotiators broke up without a deal, shortly after America ramped up its tariff rate to 25% on $200 billion worth of Chinese goods.
- In an interview with Fox News on Sunday, White House Economic Advisor Larry Kudlow said President Donald Trump and Chinese President Xi Jinping are likely to meet at the upcoming June G-20 summit in Japan.
Markets in Europe continued to fall during the Monday afternoon session, after news China will impose tariffs on some U.S. imports from June 1 .
The pan-European STOXX 600 was down by around 1% in afternoon trade. Oil and gas was the only sector in the green, with autos taking the biggest hit, down around 2.6%.
On Friday, Trade talks between U.S. and Chinese negotiators broke up without a deal, shortly after America ramped up its tariff rate to 25% on $200 billion worth of Chinese goods. In an interview with Fox News on Sunday, White House Economic Advisor Larry Kudlow said President Donald Trump and Chinese President Xi Jinping are likely to meet at the upcoming June G-20 summit in Japan. Kudlow said the chances of such a meeting "were pretty good," but he said there are "no concrete, definite plans" for when U.S. and Chinese negotiators will meet again.
However, news of China's retaliation Monday compounded losses in major European markets. Beijing will increase the tariffs to 25% from 10% on June 1, the Chinese Finance Ministry said.
Back in Europe, E.On and Centrica CNA-GB were the two notable companies reporting earnings on Monday. The former reported that first-quarter adjusted earnings before interest and tax (EBIT) had declined 8% to 1.67 billion euros ($1.88 billion), beating the 1.64 billion average forecast in a Reuters poll. Shares traded fractionally higher at the beginning of the afternoon session.
Meanwhile, Britain's largest energy supplier Centrica said it faces a challenging trading environment for the first half of the year due to a national cap on energy prices, warmer weather and weak U.K. gas prices. Gross revenue rose 54% in the first four months of 2019, and the company maintained its full-year guidance. Centrica shares were up 1.5% in afternoon trade.
The largest decline came from Danish medical device maker Ambu AMBU.B-DK , which continued a punishing period since it announced that CEO Lars Marcher would step down on May 15. Shares were down a further 11% Monday.
German industrial giant Thyssenkrupp fell by 6.9% after the collapse of a $13 billion merger with Tata Steel amid pressure from the European Union.
French mass retail group Casino Guichard also slipped by 7%. Kepler Cheuvreux cut the stock from "hold" to "reduce Monday, and expressed concerns that unless Casino's cash flow improved dramatically, parent company Rallye faces bankruptcy by 2021.
Renault RNO-FR shares fell 2% after reports suggested Nissan had pushed back against the French carmaker's renewed attempts to merge.
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