Ramla SoniEuropean markets fell as rise in tensions between the US and China continued to weigh on sentiment.
The pan-European Stoxx 600 dropped 1.7 per cent in early trade, with tech stocks tumbling 3.7 per cent to lead losses as all sectors and major bourses slid into negative territory.
Global investors taking account of China’s retaliation to the US decision forcing the closure of the Chinese consulate in Houston. Washington accused it of being a hotspot for spying and intellectual property theft.
In response, Beijing said that it is revoking the licence of the US consulate general in the southwestern Chinese city of Chengdu and ordered the consulate to cease operations.
Mainland Chinese stocks plunged, with the Shenzhen component diving more than 4 per cent to lead a broad downturn in Asian markets.
In Europe, the UK and the European Union continue to diverge on a prospective deal over their post-Brexit trading relationship as the deadline to reach an agreement is postponed to September.
EU chief negotiator Michel Barnier said yesterday that no progress had been made on the key issues and that a trade deal now looked unlikely. Britain’s top negotiator David Frost said a deal was 50:50 and an accord could be reached by September.
Meanwhile, UK retail sales came in much better than expected before the opening bell. Sales volumes in June rose by 13.9 per cent from May as lockdown eases.
British Gas owner Centrica saw its shares soar 25 per cent in early trade after agreeing to sell its US business Direct Energy for £3bn ($3.8bn, €3.3bn).
At the other end of the European blue chip index, French biotech firm BioMérieux fell 6.2 per cent.
