Trade war rips through European shares

European stock futures fell on Monday in reaction to the weekend's news: US President Donald Trump refused to lift sweeping tariffs on trading partners, and China retaliated, further fuelling the trade war.

Less than an hour before the markets were due to open, futures (essentially bets on what the stock price will be later) fell by more than four per cent in Frankfurt, almost three per cent in Paris and more than five per cent in Milan.

At the start of trading, Milan was down 7.5 per cent, Paris, Madrid and Amsterdam – more than six per cent.

London and Oslo each lost five per cent.

„The great sell-off continues – as the tariff storm rages investors are looking for a haven for their money, – said Susannah Streeter, head of money and markets at „Hargreaves Lansdown“. Trump has dashed hopes of easing his policies by calling the tariffs "medicine" and investors are tasting the consequences of this bitter pill on the global economy.“

The uncertainty of a recession in the US and beyond has sent stock markets into turmoil, and no sector has been spared.

In Paris, shares of aircraft manufacturer „Airbus“, engine maker „Safran“ and „Gucci“ owner „Kering“ were the worst losers – all lost 10 per cent each.

Shares of German arms manufacturer „Rheinmetall“ fell by more than 13 per cent, while „Commerzbank“ in Frankfurt lost almost 12 per cent.

In London, aerospace group „Melrose Industries“ topped the list of losers, down 8.5 per cent in value.