European stocks drop, Auto & banking stocks lead declines

The stocks on the European bourses had a softer start to the weak, and adds further to the downside, as sentiment soured on weekend’s media reports, which revealed that the UK PM May calls for a Hard-Brexit, as she remains on track to trigger Article 50 by March-end.

While the UK’s FTSE 100 index renewed record highs beyond 7350 levels on GBP weakness, which drove the exports-oriented stocks through the roof.  However, the London stocks failed to sustain at higher levels and fell back in the red, as Hard-Brexit concerns weighed on investor’s appetite for risk assets.

Moreover, sharp declines in the auto and banking sector stocks also collaborated to the downbeat tone on the European equities. The auto stocks were hit by comments from President-elect Trump delivered over the weekend, when he raised the spectre of a so-called 'border' tax on German car built in Mexico but. imported into the United States.  Also, in thin volumes, as the US markets observe Martin Luther King Jr. holiday exaggerated the moves.

Meanwhile Germany's DAX 30 index drops -0.50% to 11,570 levels, while the UK’s FTSE 100 index trades modestly lower at 7,335. Among other indices, the French CAC 40 index slides -0.54% to 4,895 levels. The pan-European Euro Stoxx 50 index skids -0.47% to trade just ahead of 33k mark.