Stocks

European Stocks Fail to Follow Through on U.S. Gains Due to China Trade Concerns

European stocks on Monday struggled for direction, held back on concern over U.S.-China trade talks.

European stocks on Monday struggled for direction, held back on concern over U.S.-China trade talks.

European stocks on Monday struggled for direction, held back on concern over U.S.-China trade talks. The Dow Jones Industrial Average looked set for a lower open.

After losing 2.95% last week, the Stoxx Europe 600 declined 0.09% to 379.88.

The German DAX fell 0.29% to 11978.16, the French CAC 40 fell 0.4% to 5466.48 and the U.K. FTSE 100 declined 0.24% to 7137.89.

After a 372-point burst in the Dow Jones Industrial Average on Friday, U.S. stock futures declined, as Bloomberg News reported China negotiators were trying to limit the scope of talks. Chinese officials haven’t responded to the report.

The overall economic backdrop in Europe continues to be a concern. Germany on Monday reported a 0.6% drop in factory orders in August. That was worse than the 0.4% gain expected in a FactSet-compiled economist poll.

“The main takeaway is that Germany manufacturing remains in recession. Its whole economy probably is too,” said Jasper Lawler, head of research at broker London Capital Group.

Building materials supplier SIG slumped 17% after saying a deterioration in U.K. and German trading conditions has “accelerated.”

HSBC shares fell 0.7% as the Financial Times reported the big bank may cut 10,000 jobs.

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