European shares decline, affected by fears of recession and Sino-American tension

European shares fell on Tuesday, August 2 after weak global factory data reinforced fears of an economic slowdown, while markets were nervous ahead of US House Speaker Nancy Pelosi’s upcoming visit to Taiwan.

By 7:08 GMT, the pan-European Stoxx 600 index was down 0.6%.

Three sources said Pelosi was expected to arrive in Taiwan on Tuesday, and the United States said it would not succumb to intimidation by China’s threats that it would “not stand idly by” if Pelosi visited the island, which it considers part of its territory.

European shares ended the previous session lower after energy shares fell in the wake of the decline in crude prices after weak manufacturing data from across the United States, Asia and Europe renewed demand concerns.

But the European energy sector was supported by strong results for the London-listed oil company BP, whose share rose 3.1% after the company announced that its profits for the second quarter exceeded expectations.