European markets succumb to more losses as trade worries pressure auto, oil stocks – MarketWatch

European indexes fell into the red after a slightly positive start on Friday when German export data supported investor optimism.

Refreshed trade worries put pressure on auto and oil sectors in particular.

How are markets performing?

The Stoxx Europe 600

SXXP, -0.56%

fell 0.4% to 358.55, clawing back some of the deeper losses made on Thursday when it finished down 1.5%. That marked the biggest one-day percentage decline since Dec. 27.

France’s CAC 40

PX1, -0.48%

slipped 0.3% to 4,970.16 and the FTSE 100

UKX, -0.32%

dipped 0.3% as well, to 7,075.26.

Germany’s DAX 30

DAX, -1.05%

fell 0.6% to 10,958, while Spain IBEX 35

IBEX, -0.91%

 lost 0.8% to 8,862.10.

The euro

EURUSD, -0.1235%

fell to $1.1335 on Friday, from $1.1341 late Thursday in New York, while the pound

GBPUSD, -0.1312%

dropped to $1.2948 from $1.2953.

What’s driving the markets?

Stocks got an initial lift after some rare, as of late, news on Germany’s economy as exports rose in December , according to official data. Mounting concerns about a slowdown in both the eurozone and its largest economy helped drive down stocks worldwide Thursday, after weak data and forecasts for the eurozone.

Read: How the European economy is raising fresh global growth fears

Meanwhile, trade-deal jitters returned after President Donald Trump said Thursday that he had no plans to meet with Chinese President Xi Jinping before a March 1 trade-deal deadline. The two nations are far from agreement leading to some of America’s top business figures to push for a compromise, The Wall Street Journal reported.

The European Union has agreed to resume Brexit negotiations in an attempt to break the political deadlock over the split set to take place March 29. However, EU leaders once again rejected Prime Minister Theresa May’s request to reopen the previously completed withdrawal agreement.

Brexit Brief: U.K. banks fret over data exchanges in disorderly split

What shares were active?

In luxury fashion, Hermes International SCA

RMS, +1.46%

 added 1.3% after it posted a revenue rise for the fourth quarter. Burberry PLC

BRBY, +1.27%

 added 0.7%.

Meanwhile, L’Oréal SA

OR, +1.25%

shares rose 0.6%, after the beauty company announced solid sales and results for its fourth quarter.

However, investor worries about trade between the U.S. and China put pressure on the auto and oil sector. Volkswagen AG

VOW, -2.11%

 lost 1.4%, Renault SA

RNO, -2.18%

lost 1%. Meanwhile, heavyweights BP PLC

BP., -0.60%

 lost 0.4%.

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