European Stocks Tumble amid PM May Leadership Bid, Brexit, US-China Trade War
By Staff, Agencies
The news comes as Asian stocks slid to four-month lows after investors believe the US-China trade war could spark a tech race between the two superpowers.
European stocks were hit hard on Thursday amid fallout from the US-China trade war and UK Prime Minister Theresa May's mounting pressures to step down.
Europe-wide STOXX 600 fell 0.8 percent and Germany's DAX index dropped one percent. Auto and mining stocks across Europe also plummeted 2.8 and 1.04 percent, respectively.
British chip designer ARM announced on Wednesday that it would comply with the US blockade on Chinese tech giant Huawei, pushing the tech sector down 1.25 percent.
Regarding Brexit, the London FTSE 100 fell 0.5 percent, affecting the housing market the hardest.
May's cabinet faces fresh rounds of chaos after Commons leader Andrea Leadsom resigned on late Wednesday over PM May's Brexit plan, sparking outrage across Westminster where many MPs called for May to resign. The Prime Minister is expected to speak with the 1922 Committee on Friday and to announce her resignation.
The ruling Conservative party lost roughly 1300 councilors and 44 constituencies in early May's local elections across the UK, and MPs have called for May's resignation as voters go to polls for the European elections, where Tories are expected to suffer major losses.
According to reports, No. 10 has not faced such challenges since former PM Margaret Thatcher was forced to resign in 1990 after being advised similarly by the 1922 Committee. Roughly 12 MPs will contest for her position if she steps down, with Andrea Leadsom, Rory Stewart, Boris Johnson, and Esther McVey announcing their bids for the Prime Minister's seat as the Brexit Party is expected to win European elections on Thursday.