European stocks struggle on weaker global stocks

European stocks were under pressure on Monday, following global stocks lower and after losses on Wall Street last week.

The Stoxx Europe 600 eased 0.2%, after closing down 0.3% last week. A weekly gain of 3.3% was the best since December 2016. Leading decliners, the FTSE MIB Italy index fell 0.4%. Germany’s DAX 30 was flat at 11,528.61, while France’s CAC 40 was also steady at 5,104.19. The U.K.’s FTSE 100 was unchanged at 7,097.18.

The euro was buying $1.1377, little changed from late Friday, while the British pound, +bought $1.2994 from a level of $1.2966, rising after reports of a Brexit breakthrough deal.

Investors zeroed in on signs of fresh trade tensions. In a speech Monday, Chinese President Xi Jinping pushed an image of his country as an open market and willing importer, but hopes for a trade deal with the U.S. were dashed after White House Economic Advisor Larry Kudlow threw cold water on that idea on Friday.

Meanwhile, fresh data shows signs that tensions could be taking a toll as growth in China’s service sector slipped to a 13-month low in October. Asian stocks finished mostly weaker.

Closer to home, euro-area finance ministers were meeting in Brussels on Monday to discuss Italy, after that country’s budget was rejected by officials two weeks ago. Banks slipped some after the release of a European bank stress test late last week, with Italian banks topping the poor performers list.

After the best week in years for a number of Asian stock markets, following the worst month in years for many, the region’s equities traded on a down note Monday amid profit-taking after surges late last week. Japan’s Nikkei closed down 1.5% after its best week since mid-2016, following Friday’s declines in the U.S. and amid persistent concerns about rising borrowing costs, U.S.-China trade conflicts and their effects on corporate results.