European shares tank below as investors see no relaxing signs on trade dispute

European shares took another leg down on Monday as China sent another shot across Washington's bows on trade, stirring fears of recession, while German chipmaker Infineon's deal to buy a U.S. peer weighed on the technology sector.

The pan-European STOXX 600 was down 0.6% by 0720 GMT, extending losses from Friday that marked its worst monthly performance this year. Germany's DAX, which is particularly exposed to trade risks, was down 0.7% to a two-month low. Stock markets globally took a hammering in May, with the STOXX sinking more than 6% as a series of new developments in President Donald Trump's trade war with China and others convinced some investors a slide into recession was possible over the next year.

Data on Monday showed factory activity across most Asian countries contracted last month, indicating tariff wars were taking a toll. Results of the latest surveys on European and U.S. manufacturing are due later in the day. In M&A news, Germany's Infineon agreed to buy U.S. peer Cypress Semiconductors in a deal valuing the company at 9 billion euros, including debt. Infineon's shares fell 5%, putting it at the bottom of the STOXX 600. The tech sector, also heavily exposed to the trade issue, was down 1.1%, with other chipmakers STMicroelectronics and ASM International falling more than 1% each. 

(With inputs from agencies.)