European stocks open in red amid risk aversion

  • by Ahmed Mamdouh
  • October 8, 2018, 8:52 AM
  • 424 Views
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European stocks opened lower on Monday, tracking Asian equities and US stocks closing on Friday, amid risk averse from investors after rising tensions over the future of China's economy due to the escalating trade war with the United States.

Italy’s FTSE MIB index led the decline, as it fell 1.7% to 22,074.88 points. The Euro Stoxx 50 index was down 0.57% at 3,326.48 and the Britain’s FTSE 100 slumped 0.33% to 7,294.17.

Concerns have returned to equity markets due to the risks to Chinese economy from the current trade war with the United States, which could result in a slowdown in growth rates in the world’s second biggest economy.

On the other hand, the Federal Reserve policymakers confirmed last week that interest rates would continue to rise gradually, which makes stock markets less attractive as an investment.

Asian stocks also closed lower at the beginning of the week despite the Chinese central bank's increased liquidity to counter the negative impact of higher tariffs by the United States.

Hong Kong Hang Seng Index shed 0.47% to 26,234.5 points, while the Chinese CSI 300 index dropped 4.3% to close at 3290.9 points.

Japan's Nikkei 225 index shaved 0.8% to 23783.72 points.

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