Simmering tensions between the US and China dented European shares on Monday as investors fled risk at the start of a highly uncertain week with Britain’s parliamentary vote on Brexit looming.
The pan-European STOXX 600 index fell 0.8 per cent to hit a two-year low once more by 0830 GMT, with Britain's FTSE 100 down 0.3 per cent.
Germany's DAX, the most sensitive to China due to its big exporters, fell 0.9 per cent, reports Reuters.
Shares in BASF fell 4.3 per cent after the German chemicals firm slashed its forecast for 2018 profits on Friday.
BASF peer Symrise also tumbled 3.6 per cent, helping drag the pan-European chemicals sector down 2.3 per cent, the worst-performing. Autos stocks also fell 1.8 per cent as trade tensions took their toll.
Chipmakers - AMS, Siltronic, and STMicro also fell 2.9 per cent to 5.1 per cent as investors ditched the tech sector.
French retail, hotel, and transport stocks tumbled anew after a fourth weekend of “yellow vest” protests which are disrupting the economy.
British energy utilities Centrica, and SSE both fell around 3.0 per cent as investors held their breath ahead of a crucial vote on Brexit on Tuesday.
Housebuilders Berkeley Group, Persimmon, Taylor Wimpey and Barratt Development fell 1.5 per cent to 2.5 per cent as nerves built and Peel Hunt cut its ratings.
Outside large-cap moves, shares in Interserve plunged 71 per cent after the embattled British outsourcer said it was in talks with its debt holders and considering converting debt to equity.