BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks fell sharply on Tuesday, bonds climbed and the dollar rose on safe-haven demand as simmering Sino-U.S. tensions and worries about the state of California shutting down dented investors' appetite for risk.
U.S.-China tensions intensified after the Trump administration rejected China's expansive maritime claims in the South China Sea, a move that Beijing criticized as inciting tensions in the region.
California on Monday banned indoor dining and shuttered movie theaters and bars as coronavirus infection spread beyond the Sun Belt.
Indoor religious services, gyms and hair and nail salons are again off-limits in most of the state to head off surging coronavirus cases and hospitalizations.
The U.S. earnings season kicks off this week, with Citigroup, Delta Air Lines, JPMorgan Chase and Wells Fargo among the companies due to report their quarterly results before the start of trading.
The pan European Stoxx 600 dropped 1.1 percent to 366.33 after rising 1 percent in the previous session.
The German DAX fell 1.3 percent, France's CAC 40 index lost 1.5 percent and the U.K.'s FTSE 100 was down 0.4 percent.
Tech stocks followed their U.S. peers lower, with Infineon Technologies losing 4.6 percent and Dialog Semiconductor declining 3 percent.
Drug delivery devices maker Gerresheimer AG rose 1.2 percent after backing its FY20 view.
Online supermarket Ocado Group declined 1.1 percent as it reported first-half loss before tax of 40.6 million pounds.
Anglo American and Glencore fell around 1.5 percent as copper ended a six-day winning streak.
Halma slumped 5.5 percent. After reporting record annual profit and revenue, the company warned that profit for FY2021 will fall.
Swatch Group, the Swiss manufacturer of watches and jewelry, rose 0.8 percent despite suffering its first half-year loss.
In economic releases, German economic sentiment weakened in July, survey data from the ZEW - Leibniz Centre for European Economic Research showed today.
The ZEW Indicator of Economic Sentiment fell to 59.3 in July from 63.4 in June. The score was forecast to rise to 60.0.
Data showed the British economy saw only a slight rebound in the month after the historic fall caused by the shutdown from the coronavirus pandemic.
Gross domestic product grew 1.8 percent in May from April, when it was down 20.3 percent. However, this was weaker than the expected growth of 5.5 percent. The dominant service sector grew 0.9 percent after contracting 18.9 percent.
Copyright RTT News/dpa-AFX
© 2020 AFX News
