Flaring US-China tensions send European markets lower

Markets in Europe followed their Asian peers, suffering steep losses at Monday’s opening, as Washington continues to pin the blame for the coronavirus outbreak on China.

Stock markets in Germany and France dipped on the first trading of this month, as they opened after the Labor Day holiday. France’s CAC 40 led the losses, dropping nearly four percent, while Germany’s DAX was not much higher as it lost over three percent.

The British stock market, which was one of the few open on May 1, extended last week’s losses, falling by more than two percent.

Shares trading on the Moscow Exchange followed the negative trend at Monday’s opening. The main MOEX Index was down more than one percent, while the RTS dollar index lost nearly three percent with shares of oil companies taking the biggest hit.

The spat between the US and China is seen one of the main reasons behind the losses in stock markets around the globe. Since the end of last week, Washington has been ramping up accusations against Beijing over its role in the coronavirus pandemic and considering hitting the country with new punitive tariffs.

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