Europe Markets: European stocks weighed by trade worries, regional politics

European stocks were in the red on Tuesday, with trade tensions between the U.S. and China and regional politics steering investors away from equities, moves that were in step with global markets.

How are the markets performing?

The Stoxx Europe 600

SXXP, -0.65%

 fell 0.6% to 356.15, after closing up 1.2% on Monday.

The German DAX

DAX, +0.00%

 fell 0.4% to 11,302.25, the French CAC 40

PX1, -0.64%

index lost 0.5% to 4,969.35 and the FTSE 100

UKX, -0.56%

 lost 0.6% to 6,994.21. The FTSE Italy index

I945, -0.54%

 dipped 0.5% to 19,138.32.

The pound

GBPUSD, -0.5854%

fell to $1.2747 from $1.2811 late in New York on Monday, The euro

EURUSD, -0.2472%

 was mostly unchanged at $1.1325.

What is driving stocks?

A mixture of global political events overshadowed European stocks. U.S. President Donald Trump reportedly suggested Monday that British Prime Minister Theresa May’s Brexit deal could threaten a U.S.-U.K. trade agreement, which pressured the U.K. currency.

In a separate interview with The Wall Street Journal, Trump said he was “unlikely” to hold off on higher tariffs for Chinese goods. The comments came ahead of a meeting between U.S. and Chinese leaders later in the week, which weighed on Asia-Pacific stocks and set up Wall Street for losses.

In Italy, lawmakers said they were sticking to previously stated 2019 budget goals, but were leaving open the possibility of cutting the country’s budget deficit target.

What stocks are active?

Oil stocks fell after Monday’s rebound. BP PLC

BP, -1.09%

 fell 0.5% and Royal Dutch Shell PLC

RDS.A, -1.41%

 slipped 1%. Resource stocks also took a hit with miners, Rio Tinto PLC

RIO, -2.34%

RIO, -1.93%

 down 2% and Glencore PLC

GLEN, -1.71%

GLEN, -1.71%

 off 1.6%. Sandvik AB

SAND, -2.54%

 fell over 2%.

Drug stocks were leading the decliners, with Novartis AG

NOVN, -0.77%

NVS, -1.21%

 down 1% and Bayer AG

BAYN, -2.22%

 off 1.2%. Bayer and Loxo Oncology Inc.

LOXO, -3.57%

 said Tuesday that they received accelerated approval from the U.S. Food and Drug Administration for a joint oncology drug.

Among banking names, BBVA SA

BBVA, -4.29%

BBVA, -3.78%

 fell over 4% and Metro Bank PLC

MTRO, +900.00%

 fell by 2.9%.

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