European markets declined on Monday morning as investors continue to watch rising diplomatic tensions between the U.S. and China, while travel stocks tumbled after the U.K. imposed quarantine measures on people returning from Spain.

The pan-European Stoxx 600 fell 0.5% in early trade, with travel and leisure stocks tumbling 3.2% to lead losses while basic resources bucked the trend to add 0.5%.

European stocks are struggling to follow the overnight action in Asia, where stocks broadly advanced after data showed China’s industrial profit soared in June as the economy looks to bounce back from coronavirus-induced shutdowns.

However, caution remains after a fraying of diplomatic relations between the U.S. and China, which saw the U.S. consulate in Chengdu shut down on Monday in compliance with a retaliatory measure from Beijing, after Washington ordered the closure of the Chinese consulate in Houston.

Tensions between the world’s two largest economies, along with lingering fears about the coronavirus pandemic in the U.S. and elsewhere, also pushed gold prices to new record highs in the early hours of Monday as investors sought safety. Spot gold touched as high as $1,943.9275 per ounce during Asia Pacific trading hours.

Stateside, White House Chief of Staff Mark Meadows told reporters Sunday that Trump administration officials and Senate Republicans had reached an “agreement in principle” on a fresh coronavirus relief bill, which will likely be presented Monday afternoon and is expected to total around $1 trillion.

Travel stocks plummeting

Back in Europe, Tui on Sunday announced that it would cancel all holidays from the U.K. to mainland Spain until August 9 after the British government imposed a two-week quarantine on anyone returning from the Mediterranean country. Despite a surge in new cases on the mainland, the Spanish foreign ministry insisted Sunday that its outbreak is under control. Europe’s largest holiday firm saw its shares plunge 14.5% in early trade.

Ryanair on Monday reported a net loss of 185 million euros ($216.4 million) for the first quarter of its fiscal 2021, slightly above market expectations, and warned that the next 12 months will be a “very challenging year.” The Irish low cost airline’s shares fell 8%.

Airline stocks tumbled across the board on Monday morning after the U.K. quarantine decision, with easyjet and British Airways parent IAG falling 13% and 10%, respectively, while Lufthansa shed 7.3%. Cruise operator Carnival also dropped more than 7%.

At the top of the European blue chip index, British miner Polymetal International climbed 6.2%.