Source: Sharecast
Beijing has accused the US of “seriously violating” the trade truce which the two powers agreed in Zurich last month after US President Donald Trump made the claim in reverse over the weekend without any supporting evidence.
China’s commerce ministry said it would take forceful measures to safeguard its interests and rejected Trump’s claim. It accused Washington of unilaterally introducing new discriminatory restrictions, including new guidelines on AI chip export controls, curbs on chip design software sales to China and the revocation of Chinese student visas.
Separately, Trump announced he was planning to double tariffs on steel and aluminium imports to 50% from this week.
Europe's Stoxx 600 finished 0.14% lower at 547.92, with small gains in London and Madrid offset by weakness in Frankfurt, Paris and Milan. Warsaw's WIG, meanwhile, fell 0.6% on the back of presidential election results.
“A brand new month may be upon us, but the same old issues continue to dominate investor sentiment as markets hop back on the Trump tariff train,” said Danni Hewson, head of financial analysis at AJ Bell.
“Whilst it is impossible to ignore the implications for the global economy – and there are now myriad terms dedicated to the impact the president is having on markets and day-to-day investor decision-making, from the ‘TACO trade’ to the ‘Trump collar’ – it’s also impossible to try and second guess where the next twist might take us," Hewson said.
Market movers
Polish banks were down on the election of right-wing populist opposition candidate Karol Nawrocki as president, defeating the pro-European Rafał Trzaskowski. Bank Polska Kasa Opieki, Powszechna Kasa Oszczednosci Bank, and Santander Polska all finished in the red.
German packaging and medical equipment maker Gerresheimer slumped by almost a fifth as the company cut full year guidance, citing weak demand.
Shares in European security and defence groups jumped as the British government launched a review as part of its plans to hike defence spending in response to rising threats from Russia. Dassault, Babcock, BAE Systems, Thales, Saab, Leonardo, Rheinmetall and Qinetiq were all up on the news.