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European Shares Mostly Lower Amid Soaring US-China Tensions

stockmarkets aug20 04aug20 lt

European stocks were mostly lower on Tuesday and the dollar's rebound stalled as earnings proved to be a mixed bag and investors waited to see if negotiators will make any progress on U.S. stimulus.

U.S.-China tensions also remained on investors' radar after U.S. President Donald Trump said he will ban popular Chinese-owned video app TikTok in the United States unless a tech company such as Microsoft buys it.

China will not accept U.S. theft of TikTok, the China Daily newspaper said today.

In another development, the editor of a newspaper published by China's ruling Communist Party's People's Daily said that Beijing would retaliate if all Chinese journalists based in the United States are forced to leave the country.

The pan European Stoxx 600 was down 0.3 percent at 362.64 after rising 2.05 percent on Monday in reaction to encouraging economic data from the euro zone, China and the U.K.

The German DAX slid 0.4 percent and the U.K.'s FTSE 100 was little changed, while France's CAC 40 index was rising 0.3 percent.

Energy giant BP Plc jumped 7 percent after it posted a record loss and cut its dividend, as widely expected.

Bayer AG fell nearly 3 percent after the multinational pharma and life sciences company said it expects sales of 43 billion euros to 44 billion euros this year, a range that's 1 billion euros lower than the previous target.

Chipmaker Infineon surged 3.8 percent. The company confirmed its revenue guidance for the year after posting an after-tax loss for the third quarter of its fiscal year on higher revenue.

Fashion house Hugo Boss rose about 1 percent. After reporting an overall 59 percent fall in sales for the second quarter, the company said it expects a gradual improvement in the second half of the year.

Diageo Plc, the world's largest spirits maker, plunged 5 percent after it posted a bigger-than-expected decline in underlying net sales.

On the economic front, preliminary data from Eurostat showed that euro area industrial producer prices increased for the first time in five months in June and at a faster than expected pace, even though economic activity remained damped by the Covid-19 containment measures in most of the countries in the EU.

The producer price index for Eurozone rose 0.7 percent from May, when it fell 0.6 percent. Economists had forecast a 0.5 percent increase.

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