Stocks decline as U.S.-China tensions resume

European stock markets and oil prices dropped on Monday as trade war fears re-ignited after a spat between U.S.’ and China’s top officials.

European shares were down 2.5%, while U.S. stock futures fell 1%.

MSCI’s broadest index of Asia-Pacific shares outside Japan lost 2.5%.

U.S. Secretary of State Mike Pompeo said that there was enough evidence that the new coronavirus strain originated from a laboratory in Wuhan.

An editorial in China’s Global Times called on the United States to present evidence for its claims.

Companies under the pan-European STOXX 600 are expected to decline by 40% in their second-quarter earnings.

Recent economic data showed a heavily affected global economy due to lockdowns.

U.S. manufacturing declined to an 11-year low as over 30 million Americans filed claims for unemployment.

Oil prices fell amid worries of a persisting oversupply despite easing lockdowns.

U.S. West Texas Intermediate crude futures dropped to $18.66 per barrel. Brent crude futures lost 1.7%, at $26 per barrel.