European stocks ended lower on Wednesday, as U.S.-China trade tensions returned to center stage after some White House advisers pushed for planned tariffs to be sharply increased.
Traders were assessing a fresh wave of corporate earnings reports, with shares of Volkswagen AG and Air France-KLM SA among those active after updates.
The Stoxx Europe 600 index dropped 0.5% to close at 389.84. On Tuesday, the index rose 0.2% and finished July trade up by 3.1%, its first monthly gain since April.
The U.K.’s FTSE 100 index slumped 1.2% to finish at 7,652.91. In Frankfurt, Germany’s DAX 30 index shed 0.5% to 12,737.05, while France’s CAC 40 index lost 0.2% to end at 5,498.37.
Italy’s FTSE MIB fell 1.9% to 22,791.45, and Spain’s IBEX 35 turned lower, down 0.7% at 9,799.30.
The euro fetched $1.1661, slipping from $1.1691 late Tuesday in New York.