DAX Slowed Fall, But European Shares Near 11-Week Low
Fears over higher global barriers to trade sent European stocks to 11-week lows. Bank shares fell to their lowest since December 2016 while the autos sector, a prominent target of higher US tariffs, neared a 10-month low. The German DAX stock index is trading at 12.268 level, up 0.17% on the day. This week, the DAX has lost 2.0%.
The bank sector led losses, down more than 1.2%, as investors worried about the potential impact of protectionism on the economy. Meanwhile, the automotive sector in Europe - the special goal of raising US tariffs from President Donald Trump - fell by about 0.7%. At the end of last week, Trump threatened to impose a 20% tariff on all imported cars in the US, collected in the EU. Shares of Faurecia and PSA Peugeot Citroen decreased by 1.5%.
The European Union's 28 leaders are expected to meet for the European Council in Brussels on Thursday and Friday to discuss migration, a controversial proposal to set up asylum-seeker processing centers in northern Africa, security, and the economy.