Pessimism lowers European equities

European stocks fell on Monday, under the impetus of the banks, as the continuation of the US-China trade war could tip the global economy into recession, prompting investors to buy safer badets.

Adding to pessimism around the world, protests in Hong Kong and the collapse of the Argentine peso have worsened.

The European benchmark Stoxx 600 erased its initial gains by closing down 0.3%, extending its 1.7% loss last week, as worries about rising trade tensions and the political turmoil in Italy had caused trouble.

Over the weekend, Goldman Sachs warned of fears that a trade war would lead to a recession and that a trade pact before the US presidential election of 2020 prompted investors to opt for safe havens such as yen, gold and bonds.

Bank stocks led the decline as the sector index fell 1.8% to its lowest level in more than three years.

Among the main European indices, the Spanish stock market index was the biggest loser, down 0.9% after Credit Suisse said that Spanish banks' sensitivity to interest rates and lack of a clear vision to a more cautious attitude, which accentuated the climate of pessimism.

Among the losers, mining stocks led to a 0.4% decline in the core resource index, lower prices for iron ore and copper.

British Tolo Oil stocks withstood the market trend with a 20% jump after announcing a major oil discovery at Gianna.