European stocks close lower as tech slides on Huawei fallout
European markets closed lower Monday as a U.S. crackdown on Chinese telecommunications giant Huawei weighed on the technology sector.
The pan-European Stoxx 600 closed provisionally down around 1.2%, with technology stocks leading the losses with an almost 3% drop on the fallout from heightened American scrutiny of Huawei.
President Donald Trumps administration last week added Huawei to a trade blacklist that blocks it from buying U.S. technology without special approval. Meanwhile, a host of U.S. tech giants from Google to Intel are reported to have distanced themselves from the firm.
Reports also emerged of Germanys Infineon suspending shipments to Huawei, news that resulted in a selloff in major European chipmakers. AMS was the biggest loser among semiconductor stocks in Europe, as well as the worst performer in the Stoxx 600, dropping over 13%.
Jitters around Huawei also spread into U.S. markets Monday, with the Dow Jones Industrial Average falling 90 points and the tech-heavy Nasdaq Composite index down more than 1%.
The move to clamp down on Huawei comes amid a tense trade battle between Washington and Beijing. CNBC reported on Friday that U.S.-Sino trade negotiations had stalled as the U.S. government heightens scrutiny on Chinese telecom companies.