European shares retreat from three-week highs on U.S.-China trade jitters

Written by on June 12, 2019

The German share price index DAX graph at the stock exchange in Frankfurt
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, June7, 2019. REUTERS/Staff

June 12, 2019

(Reuters) – European shares pulled back from three-week highs on Wednesday after the United States toughened its stance on trade with China and data from Beijing showed factory inflation slowed in May, deepening fears of a global economic slowdown.

President Donald Trump said on Tuesday he was holding up a trade deal with China and had no interest in moving ahead unless Beijing agrees to four or five “major points” which he did not specify.

The pan-regional STOXX 600 index fell 0.45% by 0713 GMT, with the tariff-sensitive technology sector down 0.76%.

Also weighing down the sector was a 1.2% fall in shares of Dassault Systemes after the French technology company agreed to buy Medidata Solutions, a U.S. software company involved in the sphere of clinical trials, in a deal worth $5.8 billion.

Trump also took aim at the Federal Reserve, saying interest rates were “way too high”, ahead of a reading on U.S. inflation that could shift the odds for an early cut in rates.

Italy’s FTSE MIB fell 0.38% and its banking index dropped 0.63% after the European Union moved closer to taking disciplinary action over the country’s growing debt.

However, authorities in Rome made tentative steps to avert a procedure that could saddle the country with large fines and alienate investors.

Axel Springer jumped 12.4% after funds controlled by U.S. private equity investor KKR offered 63 euros a share to buy out minority shareholders of the German publisher.

(Reporting by Amy Caren Daniel and Susan Mathew in Bengaluru)

Source: OANN

#TRUMPSTOCK OCT 4-6

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