Shares Dropped 0.5% in Europe

Shares dropped 0.5 percent on the pan-European STOXX 600 on Monday as worries deepen over Brexit and the government shutdown in the U.S.

U.S. Govt. Shutdown

Worries continue over Trump’s threat to declare a national emergency over the wall on the Mexican border, which would spark a legal challenge by Democrats and how much longer the shutdown will go on and the risks it imposes for the markets is on the minds of investors.

Easing Trade Tensions

Friday’s strong rally after the U.S. jobs data showed strong gains in the job sector also helped the index rally in its strongest daily gain as well as an easing in the trade talk tensions between the U.S. and China. The biggest gainers on Friday was healthcare, food and beverage stocks.

The comments by Fed Chair Powell helped to calm nerves after he said that worries of overheating of the U.S. economy are no longer an issue and that the Fed is pricing in any risks to the markets.

A buy signal for equities was trigged after Bank of American Merrill Lynch showed Bull & Bear gauge level slip to 1.8.

Brexit is at the forefront of market conversations as UK’s Prime Minister, Theresa May vote on her plan heralds in dangers of a second referendum and worse, woes of a no-deal EU departure.

Pirelli, Michelin, and Gestamp tire makers were downgraded by JP Morgan which has been hit by regulation and slowing Chinese sales.

Technology stocks gained 0.5 percent recovering from heavy losses of the previous week.

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