Stocks continue to slide as investors are rattled by the escalation of the US-China trade dispute.Read more
European stock markets are down sharply this morning.
Frankfurt's Dax index is down 1.4%, in Paris the Cac-40 is 1.2% lower and Madrid is down 1%.
London's FTSE 100 is holding up relatively well, with a loss of just 0.4%.
Analysts are blaming concerns over the trade tension between the US and China.
Investors are also wary over the political situation in Germany where Chancellor Angela Merkel has clashed with leaders of her coalition ally, the CSU party, over her refugee policy.
"With the US-China trade war already creating an uncomfortable trading atmosphere, the brewing political tensions between long-time allies the CDU and CSU in Germany has caused some bloody losses in the Eurozone," said Connor Campbell, financial analyst at SpreadEx.
The eyes of the world may have been on US President Donald Trump's historic meeting with North Korean leader Kim Jong-un, but the summit has had little impact on the markets.
The dollar had hit a three-week high in the run-up to the summit, but these gains soon were lost. Markets are now looking forward to this week's meetings of the US Federal Reserve and European Central Bank, and worries of a trade war between the US and its allies are still lingering in the background.
"[The summit] is more of a side show and headline grabber rather than yielding anything substantive with markets more worried about the developments at the G7 summit," said Viraj Patel, a currency strategist at ING.
On the stock markets, most of the European indexes are down slightly. London's FTSE is 0.3% lower while France's Cac 40 is down 0.2%.
The Milan stock market has open 2.2% higher following the news that the two populist parties in Italy will be able to form a government after all.
Other European markets have also opened higher, with the FTSE 100 in London and Cac 40 in Paris both up 0.6%, while Madrid is 0.8% higher and Frankfurt has added 0.9%.
Europe's main stock markets are seeing a selloff, due to worries about the Turkish lira's weakness, Italy's post-election uncertainty, and slower German economic growth.
Add to that trade tensions between the US and China, and it's proving a pretty toxic mix.
The FTSE 100 is down 1.3%, while France's CAC and Germany's Dax have slipped 1.5% and 1.7% respectively.
Like London, European markets have climbed across the board this morning. Frankfurt's Dax has climbed 1.6%, the Cac in Paris is 1.2% higher, and there have been similar rises in Amsterdam, Brussels and Madrid.
Rebecca O’Keeffe, head of investment at Interactive Investor, comments: "Investors are breathing a sigh of relief after the torrid times last week, with European equity markets rallying this morning."