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European stocks drop on China trade data

FXStreet (Mumbai) - The stock markets across Europe opened on a weak note and extended losses after China trade data highlighted the anaemic demand in the world’s second largest economy.

At the time of writing, the pan-European Euro Stoxx 600 index was down 0.70%. The blue chip Stoxx 50 index was down almost 0.60%. Among the regional indices, Germany’s DAX was down 0.60%, France’s CAC was down 0.56%. The mining-heavy UK’s FTSE index was down 0.5%.

Investor confidence took a dive after the data in China showed the exports fell for the fifth consecutive month. However, the real concern for Europe is the weak Chinese imports, which highlight a weak consumption in the world’s second largest economy.

The mining stocks were hit hard. The Euro Stoxx 600 basic resource index fell 3.7%. Shares in BHP Billiton, Rio Tinto and Anglo American were down more than 4% each. Energy companies continued to decline after oil futures settled at their lowest level since early 2009 on Monday.

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