European shares slip as EU summit dampens mood

Published: June 28, 2018 16:05:59 | Updated: June 30, 2018 12:14:28

European shares slipped on Thursday amid the ongoing trade tensions as investors positioned for a potentially divisive European Union summit.

Having clawed back some ground on Wednesday, the pan-European STOXX 600 and Germany's trade-sensitive DAX .GDAXI were down 0.4 and 0.6 per cent by 0850 GMT, with technology and financial shares the biggest drags.

Tech stocks were the worst performers, falling 1.3 per cent as concerns over tariffs spread to a sector thus far considered relatively resilient to trade disruptions, reports Reuters.

Chipmakers STMicro, Infineon and ASML were among the biggest laggards, while Nokia and Micro Focus also fell.

Asian tech stocks had led a selloff overnight after threats from US President Trump’s threats to curb Chinese investment in US tech firms.

High dividend-paying consumer staples stocks including Nestle and Unilever, considered safer in times of market stress, made gains.

A strong dollar was also a boost for the big dollar-earning multinationals.

H&M shares fell 3.4 per cent at the open after posting earnings, but then recovered to trade up 1.5 per cent.

Shares in satellite service provider SES rose 3.0 per cent, extending Wednesday’s gains after hedge fund Kerrisdale Capital disclosed long positions in it and Intelsat.

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