European Shares Retreat Ahead Of BoE Rate Decision

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(RTTNews.com) - European stocks fell sharply on Thursday, with auto and resource stocks pacing the declines, after reports the Trump administration is mulling raising tariffs on Chinese goods.

Meanwhile, investors await an interest rate decision from the Bank of England, with economists expecting a 25 bps hike despite the Brexit risks and significant changes in the external environment.

The pan-European Stoxx Europe 600 index was down 0.8 percent at 386.91 in late opening deals after rising half a percent in the previous session.

The German DAX was declining 1.7 percent, France's CAC 40 index was losing 0.7 percent and the U.K.'s FTSE 100 was down over 1 percent.

German luxury carmaker BMW fell 2.3 percent after reporting a drop in second-quarter profit.

Daimler, Volkswagen, Renault and Peugeot lost 2-3 percent on worries that an escalating tariff war would hurt their margins and sales.

Mining stocks Anglo American, Antofagasta and Glencore were down 3-4 percent.

German engineering giant Siemens gave up nearly 5 percent after it announced a new company structure under Vision 2020+ to give individual businesses significantly more entrepreneurial freedom.

Dialog Semiconductor plummeted 4.6 percent. The company expects third-quarter gross margin to be broadly in line with second quarter, and fiscal 2018 to be broadly in line with fiscal 2017.

Inmarsat tumbled almost 5 percent in London. The satellite operator cut dividend after reporting a 20 percent fall in second-quarter profit.

Rolls-Royce Holdings rallied 2 percent. The company sounded upbeat about 2018 profit outlook after reporting a pretax loss in the first half.

Barclays lost over 1 percent and Aviva shed 0.7 percent after declaring their half-year results.

Societe Generale dropped 2.4 percent despite the French bank posting higher second-quarter profit on strong net banking income.

Asset manager Amundi soared 8 percent on reporting a 14 percent rise in Q2 net profit.

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This article appears in: Politics , US Markets , Stocks

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