European stocks fell on Monday as rising U.S.-China tensions and continued uncertainty over a Brexit trade deal sapped investors' appetite for risk.
The U.S. is preparing to sanction at least a dozen more Chinese officials over their role in the recent disqualification of Hong Kong legislators, media reports suggest.
Chinese Foreign Ministry spokeswoman Hua Chunying said that Beijing would take countermeasures should the U.S. continue down the "wrong path."
Traders have started pricing in the prospect of a 'no deal' outcome to EU-UK trade negotiations after the Sun newspaper reported that Prime Minister Boris Johnson was ready to walk away from negotiations "within hours" amid stubborn differences over fishing rights in U.K. waters, fair competition and ways to solve future disputes.
Johnson will call time on a Brexit-deal if Brussels refuses to budge from their "outrageous" demands, it was said.
Upbeat trade data from China and encouraging German industrial output data helped to limit overall losses to some extent.
Official data revealed that German industrial output grew more-than-expected in October, driven by the higher production of automobile and capital goods.
Industrial production climbed 3.2 percent month-on-month, faster than the 2.3 percent rise in September. Economists had forecast the monthly growth to ease to 1.6 percent in October.
On a yearly basis, industrial output fell 3 percent, but that was slower than the revised 6.7 percent decrease posted in September.
U.K. house prices grew 1.2 percent in November from October, when prices were up 0.3 percent, data released by the Lloyds Bank subsidiary Halifax and IHS Markit showed. Economists had forecast prices to climb 0.5 percent.
The Stoxx Europe 600 index dropped half a percent to 391.96 after rising for five consecutive weeks.
The German DAX gave up half a percent and France's CAC 40 index shed 0.9 percent while the U.K.'s FTSE 100 was up 0.3 percent, boosted by a falling pound.
Swiss drug maker Roche Group rose half a percent. The company announced positive results from a new analysis of pooled, three-year follow-up data of 401 people with haemophilia A from the pivotal HAVEN 1-4 studies.
Aryzta gained 1.2 percent. The food company has received a conditional offer from Elliott to purchase the entire share capital of the company at 0.80 Swiss francs per share.
Countrywide shares jumped as much as 20 percent as property firm Connells upped its offer for its rival by 30 percent to 325 pence per share.
Miniature figurines maker Games Workshop rallied 3 percent after announcing it expects a jump in sales and pretax profit for the first half of fiscal 2021.
Land Securities, a commercial property development and investment company, tumbled 3.2 percent after announcing an acquisition.
For comments and feedback contact: editorial@rttnews.com
