European stocks closed lower Monday, as analysts said a surging euro squashed an early rally that had been sparked by an easing in recent trade-related tensions.
The Stoxx Europe 600 index fell 0.7% to end at 363.19, closing at its lowest level since February 2017. The pan-European benchmark added to last week’s decline of 3.2%, its largest such retreat since the week ended March 2. It is now down 6.7% so far in 2018.
The euro traded at $1.2446, up from $1.2356 late Friday in New York. A stronger euro can whack the Stoxx 600 as many of its multinational companies generate their sales in foreign currencies.
In Frankfurt, the DAX 30 dropped 0.8% to close at 11,787.26, and in Paris, the CAC 40 index erased 0.6% to finish at 5,066.28. The FTSE 100 index gave up 0.5% to end at 6,888.69 in London.