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European shares drop amid trade worries, EU Summit eyed

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European shares dropped on Thursday, trailing losses in U.S. and Asia, amid persisting worries over trade tensions, ahead of a tense European Union summit that will discuss critical issues.

Euro STOXX 600 tumbled 0.33 percent to 378.71 after gaining 0.69 percent the previous session.

Dax 30 slipped 0.50 percent to 12,283.70 despite the ease in political concerns in Germany after Chancellor Angela Merkel’s coalition partner said it was not seeking to break up the government.

France’s CAC 40 fell 0.25 percent to 5,314.14 and U.K. FTSE 100 edged down 0.08 percent to 7,615.50.

Financials and mining shares were the worst performers, while oil stocks reported the biggest gains as crude prices climbed to a 3 1/2 year high.

Trade tensions escalated after White House economic adviser Larry Kudlow said Trump’s use of a strengthened national security review process to Chinese investment in U.S. technology did not indicate a softened stance on China.

Later in the day, eyes will focus on the EU Summit in Brussels that will tackle a range of global economic issues, including migration, security, defense, and the economy.

U.S. stocks finished lower on Wednesday, with the S&P 500 falling 0.86 percent to one-month closing of 2,699.63.

In Asia, shares dropped to nine-month lows, pushing the MSCI’s broadest gauge of the world’s stock markets to its lowest level in nearly three months.

Crude oil extended its rise for a third consecutive session to $72.67 a barrel after a fall in U.S. crude inventories that was four times above forecasts.

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