The STOXX 600 also posted its sharpest one-day decline since early August after Monday’s 1% jump.
European equities are under stress as investors gauge the likelihood of tariff hikes following Trump’s sweeping US presidential victory last week.
China-related assets struggled globally as Trump is expected to tap US Senator Marco Rubio as his secretary of state, who in past years has advocated a muscular foreign policy toward America’s geopolitical enemies, including China.
“As he builds his teams and the names come out, the market is realizing what could happen,” said Fiona Cincotta, senior market analyst at CitiIndex.
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“China’s economic situation is quite fragile and if you are putting heavy tariffs on China when it is already weak, it will affect its imports and that will naturally affect Europe.”
Basic resources fell 3.7% as most metals fell, with Polish miner KGHM down 9.2% and the STOXX 600 the worst hit.
Personal and household goods, which include heavyweight China-exposed luxury firms, fell 2.4%. The broader luxury index was also down about 4%.
However, the technology sector faced mostly flat sector losses as Temenos jumped 4% following the Swiss banking-software company’s strategic plan to accelerate growth over four years.
In earnings-driven losses, German group Bayer fell 14.5%, after warning that weak agricultural markets could cut its earnings further next year.
Brenttag eased 5% after the German chemicals distributor reported a fall in third-quarter core profit, pulling the chemicals sector down 3%.
Italy’s Mediobanca fell 8.2% after cutting its full-year net interest income forecast.
UK’s Convatech Group jumped 22% after the medical products and technology firm raised its FY24 organic sales growth forecast.
Infineon reversed course to rise 4% after initially falling, as the German chipmaker forecast 2025 revenue due to weak demand in its end markets other than AI.
Meanwhile, German inflation rose to 2.4% in October, confirming a preliminary reading, with investor sentiment clouded this month amid Trump’s victory and the fall of the Berlin government.
US inflation readings and minutes from the European Central Bank’s last policy meeting are due later in the week.
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