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European Markets Close Lower with Mining Stocks Under Pressure

By Investors Hub

European stocks have moved modestly lower on Monday, with mining stocks under pressure on concerns that an escalating trade war between the U.S. and China could hurt global growth.

The Trump administration is set to impose tariffs on another $200 billion in goods imported from China this week as hopes fade for a thaw in trade relations between the world?s two largest economies.

While the German DAX Index has fallen by 0.4 percent, the U.K.?s FTSE 100 Index and the French CAC 40 Index are both down by 0.2 percent.

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AstraZeneca has dropped after announcing the results of a phase 3 trial of a three-drug combination for treating chronic obstructive pulmonary disease.

Deutsche Bank shares have edged down slightly on a report that the German bank is planning to transfer a major portion of its assets from London to Frankfurt post-Brexit.

On the other hand, Swedish retailer Hennes & Mauritz AB has jumped after reporting encouraging third quarter results.

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Belgian biotech firm Argenx has also soared after reporting positive topline results from a trial of its Efgartigimod drug.

In economic news, Eurozone inflation slowed as estimated in August, final data from Eurostat revealed. Harmonized inflation came in at 2 percent in August versus 2.1 percent in July, which was the highest since December of 2012.

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U.K. house prices recovered in September, property website Rightmove said. House prices gained 0.7 percent month-on-month in September after a 2.3 percent decrease in August.

Separately, the British Chambers of Commerce downgraded its growth expectations for the U.K. economy, citing a weaker outlook for trade and investment amid Brexit uncertainties.

The growth forecast lowered to 1.1 percent from 1.3 percent in 2018 and 1.3 percent from 1.4 percent for next year.

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Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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