European shares hit 22-month low, risk-off mood prevails
European shares failed to rebound and hit a 22-month low on Monday after their worst week since a correction in February as threats such as trade wars, rising U.S. yields, Chinese growth, Brexit and the Italy/EU budget row continued to weigh on markets, Reuters reports.
For European bourses there was no wind of optimism from Asia where stocks suffered as rising diplomatic tensions between Riyadh and the West over the disappearance of a journalist pushed oil higher.
At 0754 GMT, the pan-European STOXX 600 was down 0.6 percent at 356.8 points, levels not seen since December 2016.
Noting that Wall Street had managed to stage a rebound on Friday, ING analysts stressed that risks were still on the upside.
“Just as you shouldn’t breathe too big a sigh of relief after earth tremors end, we remain anxious of a market that seems jittery, even against the backdrop of a very strong U.S. economy”, the bank’s analysts told its clients.