EU Elections: Shares Fall on UK PM May’s Pressure

EU ELECTIONS – As the European Parliamentary Elections start, shares in Europe fell steeply due to both US and UK factors.

Investors are grappling with the latest bout in the US-China trade war as well as the growing pressure over British Prime Minister Theresa May’s shoulders calling for her resignation.

STOXX 600, pan-European stock market index, had fallen 0.8%. Germany’s DAX, which is sensitive to trade and China-related news, lost a full percentage point.

The slump in European shares follows a similar fall in Asian shares to four-month lows, as investors become more anxious that the US-China trade war could turn out to be a technology-focused cold war.

There have been reports that Washington is considering limits on Chinese video surveillance firm Hikvision, and these added to the thorns between the two sides prior to a high profile summit later in the month.

So far this month, the STOXX 600 is down around 3%.

European auto and mining sector indexes lost 2.80% and 1.04% respectively. British chip designer ARM was among the latest to cut ties with net gear and phone maker Huawei. Other companies have been complying with the US’s blockade of the Chinese telecoms giant.

The tech sector has also dropped 1.25%.

Calls for UK Prime Minister May’s Resignation

Meanwhile, the pound hovered near four-month lows as a key ally quit from May’s cabinet late on Wednesday.

This boosted call for the British Prime Minister. According to some reports, May is expected to announce her departure from office on Friday.

This new attempt to push the prime minister out comes as voters start flocking polling booths form the European elections. May’s ruling Conservative Party is facing a huge defeat.

London’s FTSE 100 shed 0.5%. Homebuilders, which are mostly sensitive to news related to Brexit, have been among the worst hit.