European shares slip on renewed fear of trade conflict

Published: August 31, 2018 18:13:15 | Updated: September 02, 2018 10:54:52


European shares slipped for a second day on Friday on reports that US President Donald Trump is planning more tariffs on China, while Whitbread surged after clinching a $5.1 billion deal with Coca-Cola.

The pan-European STOXX 600 dropped 0.5 per cent by 0833 GMT, on track for its biggest decline in a fortnight. Germany's DAX, heavier in trade-sensitive industrial stocks, fell 1 per cent.

Sparring over trade between Trump and the European Union weighed on car stocks, down 1.0 per cent and the worst-performing sector.

Daimler, Volkswagen, BMW, and Continental were the biggest weights on the DAX, falling 1 to 1.3 per cent, reports Reuters.

In contrast, Whitbread soared as much as 19 per cent after the UK company agreed to sell its Costa Coffee chain to Coca-Cola for 3.9 billion pounds ($5.1 billion).

Sage tumbled 9 per cent, the biggest decline among European stocks while Air France fell 2.5 per cent.

German carrier Lufthansa also fell 4.2 per cent.

Shares in Edenred fell 3.0 per cent after Berenberg cut the stock to “sell” from “hold”, saying its business model remains structurally challenged.

Analysts have, however, adjusted their earnings expectations for autos stocks since the trade war broke out.

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