European stocks traded lower Thursday as relations between China and the U.S. come under strain over Hong Kong, amid concerns that “phase one” of a trade deal between the two powerhouses may be pushed into 2020.

The pan-European Stoxx 600 was 0.5% at 402.21 lower during afternoon deals, with all sectors and major bourses in negative territory. Basic resources, a sector heavily exposed to China, slipped 1.2% to lead losses, while financial services stocks shed 1.1%.

Reports emerged Thursday that China had invited U.S. negotiators to Beijing for another round of trade talks, but this did little to improve market sentiment after days of mixed signals.

Source : CNBC