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European Shares Slide On US-China Trade Worries

stockmarkets dec21 13nov19 lt

European stocks fell on Wednesday as anti-government protests in Hong Kong entered a third consecutive day of violent unrest.

Investors also fretted over the U.S.-China trade deal after U.S. President Donald Trump threatened further increase in tariffs if a trade deal is not reached.

Investors await the publication of the Eurozone's latest industrial production figures as well as Fed Chair Jerome Powell's congressional testimony for further direction.

The pan European Stoxx 600 dropped 0.8 percent to 403.53 after rising 0.4 percent in the previous session.

The German DAX fell over 1 percent, while France's CAC 40 index and the U.K.'s FTSE 100 were down around 0.8 percent.

Banks were among the prominent losers. Commerzbank lost 5 percent, Deutsche Bank declined 3.3 percent and BNP Paribas gave up 1.6 percent.

Tariff-sensitive automakers such as BMW, Volkswagen and Peugeot were down around 2 percent.

Miners traded lower amid lingering uncertainty on whether, and when, the United States and China will agree a long-awaited deal to end their bitter trade dispute. Antofagasta lost 2.3 percent and Glencore declined 2.6 percent.

Commercial broadcaster ProSiebenSat.1 tumbled 2.9 percent after Italy's Mediaset ruled out a full takeover of the company.

Real estate investment company Deutsche EuroShop fell 3.2 percent after lowering earnings and sales view for fiscal 2020.

Deutsche Wohnen rallied 2.2 percent after the property company decided to buy back up to a maximum of 25 million shares of the company at a total maximum purchase price of up to EUR 750 million.

Leoni slumped 11 percent as it reported third-quarter consolidated net loss of 88 million euros, compared to net income of 23 million euros in the previous-year quarter.

Specialty chemicals company Lanxess lost 3.2 percent after reporting a fall in third-quarter net profit.

British pub operator J D Wetherspoon gained around 1 percent. The company reported that for the 13 weeks to 27 October 2019, like-for-like sales increased by 5.3 percent and total sales by 5.6 percent.

Smiths Group advanced 1.6 percent. The engineering company kept its full-year outlook after reporting double-digit growth in first-quarter revenue.

Residential developer Taylor Wimpey fell 1.5 percent. The company said it is on track to deliver full year 2019 results in line with expectations, albeit with slightly higher volumes and slightly lower operating margins than guided at the half year.

Property development and investment company British Land tumbled 2.9 percent after widening its pretax loss in the first half of fiscal 2020.

Oil & gas exploration company Tullow Oil plunged 21 percent after cutting its
2019 oil production and free cash flow forecast for the year.

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