European stocks flat on trade troubles

Europe’s main stock gauge was little changed on Monday, with analysts citing uncertainty over global trade tensions. Trading could be somewhat muted as U.S. investors take a break for Labor Day.

The Stoxx Europe 600 was recently roughly flat at 382.39, after Friday’s 0.8% drop that left it down 2.4% for August. The panEuropean gauge is showing a decline of nearly 2% for the year to date. Germany’s DAX shed 0.2%, while France’s CAC 40 lost 0.1%. The U.K.’s FTSE 100 bucked the negative trend, rising 0.6%.

Italian banks gained despite Fitch rating agency’s reducing it outlook for Italy to negative on Friday. The biggest mover at the open was veterinary products group Dechra Pharmaceutical which sank close to 20 percent after publishing its full-year results and saying it was implementing a “hard Brexit” mitigation plan.

Trade talks between the U.S. and its partners have been a source of volatility for global markets in recent months. The spotlight lately has been on the Trump administration’s stance toward Canada.

Over the weekend, President Donald Trump tweeted that there is no overriding political imperative to include Canada in a revamped version of the North American Free Trade Agreement. His comments come after a tentative deal with Mexico to rewrite Nafta appeared to signal that the White House is willing to compromise on its hardline demands and avert ruinous trade wars.

Japan’s Nikkei fell as renewed trade worries hurt sentiment, while Renesas Electronics tumbled on concerns about how it would finance its plan to purchase a U.S. chipmaker. The Nikkei share average shed 0.7 percent to 22,707.38.

Oil prices rose on Monday, supported by concerns that falling Iranian output will tighten markets once U.S. sanctions bite from November, but gains were limited by higher supply from OPEC and the United States.