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European Shares Slide As Appetite Wanes

markets 111714 14jun19

European stocks fell on Friday as renewed trade tensions, underwhelming Chinese industrial output data and worries of a potential military confrontation in the Middle East dented risk appetite.

China's industrial output growth slowed to a more than 17-year low of 5 percent in May amid an escalating trade war with the United States, a government report showed.

The pan European Stoxx 600 was down 0.4 percent at 378.72 after rising 0.2 percent in the previous session.

The German DAX was losing 0.6 percent, while France's CAC 40 index and the U.K.'s FTSE 100 were down around 0.2 percent.

Technology shares were moving lower after U.S. chipmaker Broadcom slashed its revenue guidance for the full fiscal year, citing the impact of export restrictions on Huawei. Infineon, AMS and STMicroelectronics lost 5-6 percent.

German automaker Volkswagen shed half a percent on saying it is close to reaching a deal with Ford Motor on autonomous and electric vehicles.

Rivals BMW, Daimler, Peugeot and Renault were also moving lower. Reuters reported that the U.S. has denied requests by Tesla, General Motors Co. and Uber for waving 25 percent tariffs related to Chinese products.

Kier Group shares plunged 16 percent in London after reports that the builder is preparing to sell its housebuilding unit for a lower-than-expected price.

Precious metals mining company Fresnillo rallied 2.3 percent as gold jumped more than 1 percent to surpass the key $1,350 level for the first time since April last year.

SThree plc jumped 2.8 percent. The specialist staffing company said the Group's performance in the first half of the year was in line with management expectations.

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