European shares slip on trade worries

Published: November 27, 2018 16:11:50 | Updated: November 28, 2018 15:04:49

File Photo (Collected)

European shares slipped 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 per cent by 0851 GMT per cent, pulling back from the one-week high reached the day before on optimism over Brexit and a possible Italian budget compromise with Brussels.

Among the leading sectoral fallers on Tuesday were mining companies, down 1 per cent as copper prices slid for the third day, pressured by Trump comments. The export-oriented auto sector fell 0.6 per cent.

Thomas Cook shares fell 30 per cent to a six-year low, putting the stock on track for its biggest one-day drop since end 2011.

Its slump dragged down shares in other travel companies. TUI  fell 5.1 per cent to the bottom of the STOXX 600.

However, Accor rose more than 1.0 per cent. Europe’s largest hotels company stuck to its target of doubling core earnings to 1.2 billion euros by 2022.

Tele2 rallied for a second day, up 7.5 per cent, following a Reuters report that the European Commission was set to approve without conditions the sale of its Dutch business to Deutsche Telekom.

Among other top movers on the STOXX were UDG Healthcare, down 6.7 per cent after results. Traders pointed out weak cash flow figures.

Share if you like