European Stocks Lower on Us-China Tension

European stocks fell from their highest levels in a month as the tension between the United States and China weakened hopes of a rapid global economic recovery.

Europe’s STOXX 600 was down 0.9% at 0800 GMT and London’s FTSE 100 also fell 0.9%, both partially giving-up yesterday’s gains.

Weak earnings reports from some European companies were a catalyst for the downturn and the growing tensions in Beijing with Washington over trade, technology and geopolitics overshadowed the data showing that the Chinese economy returned to growth in Q2.

The focus is now on the ECB monetary policy decision 11:45 GMT, but the bank will surely remain on hold after a series of extraordinary moves.