UKX FTSE 100 Index

By Victor Reklaitis, MarketWatch

But Ambu shares jump as analysts say it's a buy

European stocks retreated Monday, weighed down by another bout of trade-related angst.

U.S. President Donald Trump on Sunday made new threats (http://www.marketwatch.com/story/trumps-latest-threat-to-us-trade-partners-drop-tariffs-or-face-consequences-2018-06-24) against America's trade partners, and he also is reportedly readying more regulatory measures targeting China (http://www.marketwatch.com/story/trump-seeks-curbs-on-chinese-investment-in-us-tech-firms-exports-to-china-2018-06-24).

How markets are performing

The Stoxx Europe 600 Index shed 1% to 381.10, building on last week's drop. The pan-European benchmark rose 1.1% on Friday (http://www.marketwatch.com/story/greece-leads-european-stocks-higher-on-bailout-green-light-2018-06-22), but still suffered a weekly decline of 1.1%.

In Monday action, Germany's DAX 30 fell 1.3% to 12,419.85, while France's CAC 40 was down 0.9% to 5,339.58. The U.K.'s FTSE 100 (http://www.marketwatch.com/story/ftse-100-falls-as-trade-fears-show-no-sign-of-abating-2018-06-25)lost 0.9% to 7,612.69.

The euro inched up to $1.1660 from $1.1656 late Friday in New York, not making a big move after a closely watched business climate index from Germany's Ifo Institute came in roughly as expected. The gauge registered a June reading of 101.8, down from just above 102 last month and about in line with forecasts (http://www.marketwatch.com/story/german-business-sentiment-falls-says-ifo-survey-2018-06-25) for 101.6.

Don't miss:Two years after Brexit vote, these charts show the U.K. economy losing momentum (http://www.marketwatch.com/story/two-years-after-brexit-vote-these-charts-show-the-uk-economy-losing-momentum-2018-06-22)

What's driving markets

Investors are remaining concerned that trade tensions between the U.S. and major trading partners such as China and the European Union could develop into a big drag on the global economy.

In his new threats (http://www.marketwatch.com/story/trumps-latest-threat-to-us-trade-partners-drop-tariffs-or-face-consequences-2018-06-24) against trade partners, Trump called for them to remove trade barriers and tariffs, or face the consequences. In addition, the American president plans to bar many Chinese companies from investing in U.S. technology firms, and by blocking additional technology exports to Beijing, said a Wall Street Journal report (http://www.marketwatch.com/story/trump-seeks-curbs-on-chinese-investment-in-us-tech-firms-exports-to-china-2018-06-24) citing people familiar with administration plans.

Check out:And the most American-made car is... (http://www.marketwatch.com/story/and-the-most-american-made-car-is-2018-06-21)

Meanwhile, the Turkish lira jumped as currency markets opened Monday, in the wake of a victory for incumbent President Recep Tayyip Erdogan (http://www.marketwatch.com/story/turkeys-erdogan-wins-sweeping-presidential-victory-extends-grip-on-power-2018-06-24) in Sunday's presidential and parliamentary elections. But many analysts suggested that any relief rally for the currency would be short-lived (http://www.marketwatch.com/story/turkish-lira-jumps-after-erdogan-wins-in-elections-2018-06-25), as investors will now turn to lingering long-term concerns.

What are strategists saying?

"The dark mood over global markets returns," said Ken Odeluga, a City Index analyst in a note.

There is "increasing pessimism that a full-blown U.S.-China trade war may be unavoidable," Odeluga added. The two countries have the world's two biggest economies.

Check out:Why a major trade war could mean a 'full-blown recession' (http://www.marketwatch.com/story/why-a-major-trade-war-could-mean-a-full-blown-recession-2018-06-22)

Stock movers

Prysmian SpA (PRY.MI)tumbled 6% for the Stoxx Europe 600's biggest drop after the Italian cable maker issued a profit warning, citing technical issues with an undersea cable project.

On the up side, Ambu A/S shares (AMBU-B.KO)gained 7% for the Stoxx Europe 600's largest gain, as published reports said J.P. Morgan analysts started coverage of the Danish health-care technology company with a rating of overweight, or buy.

Shares in oil giants Royal Dutch Shell PLC (RDSA.LN) (RDSA.LN)and BP PLC (BP.LN) (BP.LN)fell 0.6% and 1.5%, respectively, as Brent crude futures (http://www.marketwatch.com/story/brent-slides-after-opec-lifts-output-caps-2018-06-25)declined. Oil traders are reacting to this past weekend's agreement (http://www.marketwatch.com/story/russia-backs-opec-plan-for-nominal-lift-to-oil-production-2018-06-23) among key producers to lift production caps.

What economic news is in focus?

The European Central Bank won't take action on raising short-term interest rates until its October 2019 meeting (http://www.marketwatch.com/story/ecb-official-signals-no-rate-hike-until-october-2019-at-the-earliest-2018-06-25), a top ECB official signaled in an interview with The Wall Street Journal.

(END) Dow Jones Newswires

June 25, 2018 05:44 ET (09:44 GMT)

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