European Shares Decline On Trade War Worries

(RTTNews) - European stocks drifted lower on Monday after U.S. President Donald Trump threatened to impose a 30 percent tariff on European Union goods, raising concerns over a prolonged and deeper economic slowdown.

Media reports suggest that the European Union has prepared a €21 billion ($24.52 billion) tariff package targeting American goods if trade talks between the two sides collapsed.

The pan European STOXX 600 dropped half a percent to 544.83 after falling 1 percent on Friday.

The German DAX declined 0.8 percent and France's CAC 40 shed 0.6 percent while the U.K.'s FTSE 100 was up 0.4 percent.

Automakers tumbled, with BMW, Mercedes-Benz, Volkswagen and Porsche all falling around 2 percent.

Mining giant BHP rose about 1 percent after signing preliminary deals with China battery giants CATL and BYD to explore opportunities in battery technology and electrification.

AstraZeneca gained 2 percent in London after its experimental drug baxdrostat proved to be successful in lowering high blood pressure in a late-stage study.

French defense-related stocks were rising after President Emmanuel Macron on Sunday called for a massive boost to France's defense spending, citing a greater threat from Russia.

Thales rose 1.4 percent, Exail Technologies surged 4.7 percent and Dassault Aviation rallied 2.2 percent.