European stocks closed lower Monday, with a decline shares of technology shares and banks overshadowing gains in the oil-and-gas sector.
How are markets performing?
The pan-European Stoxx Europe 600 SXXP, -0.16% fell 0.2% to 363.50, after closing down 0.3% last week. A weekly gain of 3.3% was the best since December 2016, according to Dow Jones Market Data.
Leading decliners, the FTSE MIB Italy index I945, -0.56% fell 0.6% to 19,281.03. Germany’s DAX 30 DAX, -0.21% closed down 0.2% at 11,494.96, while France’s CAC 40 PX1, -0.01% ended the session virtually unchanged at 5,101.39.
Meanwhile, the U.K.’s FTSE 100 UKX, +0.14% rose 0.1% at 7,103.84.
The euro EURUSD, +0.2195% was buying $1.1374, little changed from late Friday, while the British pound GBPUSD, +0.5784% bought $1.3010 from a level of $1.2966, rising after reports of a Brexit breakthrough deal.
What’s driving the market?
Investors zeroed in on signs of fresh trade tensions. In a speech Monday, Chinese President Xi Jinping pushed an image of his country as an open market and willing importer, but hopes for a trade deal with the U.S. were dashed after White House Economic Advisor Larry Kudlow threw cold water on that idea on Friday.
Focus will also fall on U.S. midterms, where polling suggests Republicans could lose the house to the Democrats, but keep power in the Senate. The outcome of a two-day Federal Reserve meeting later in the week will also capture attention.
Closer to home, euro-area finance