European shares down on more trade war worries
European shares fell on Tuesday after a new threat by Washington to impose tariffs on more Chinese imports, while Thomas Cook tanked on a profit warning.
The pan-European STOXX 600 benchmark index fell 0.2 percent by 0851 GMT percent, pulling back from the one-week high reached the day before on optimism over Brexit and a possible Italian budget compromise with Brussels.
The U.S. president said on Monday he expected to raise tariffs on $200 billion in Chinese imports to 25 percent from the current 10 percent and repeated his threat to impose tariffs on all remaining imports from China.
Among the leading sectoral fallers on Tuesday were mining companies, down 1 percent as copper prices slid for the third day, pressured by Trump comments. The export-oriented auto sector fell 0.6 percent.
Travel stocks were under pressure after Thomas Cook cut its profit forecast for the second time in two months and suspended its dividend after the hot British summer deterred holidaymakers from going abroad. Thomas Cook shares fell 30 percent to a six-year low, putting the stock on track for its biggest one-day drop since end 2011.
Asian share markets fought to keep a global rebound alive on Tuesday after U.S. President Donald Trump seemed to quash hopes of a trade truce with China, clouding what had been a bright start to the week. Moves were generally muted but Japan’s Nikkei managed to add 0.8 percent and Chinese blue-chips rose 0.4 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan dithered either side of flat and was last up 0.2 percent.
In commodity markets, oil prices laboured with record production by Saudi Arabia. Oil had climbed nearly 3 percent on Monday but that was seen as largely a technical correction after weeks of heavy losses, driven both by oversupply and demand worries. U.S. crude was off 9 cents at $51.54 a barrel, while Brent futures inched up 3 cents to $60.51.
This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.