European Shares Slide Amid Trade Worries

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(RTTNews.com) - European stocks were broadly lower on Wednesday as Chinese manufacturing data disappointed and media reports suggested the Trump administration is considering imposing additional tariffs on Chinese imports.

The Federal Reserve's policy decision also remained in focus, though no change to the fed funds rate is expected.

The Bank of England announces its rate decision tomorrow, with analysts expecting a 25 bps hike despite Brexit gloom.

Meanwhile, Eurozone manufacturing activity remained subdued at the start of the third quarter, as initially estimated, final data from IHS Markit showed. The factory PMI rose to 55.1 in July, in line with flash estimate, from 54.9 in June.

Elsewhere, data from IHS Markit and Chartered Institute of Procurement & Supply showed the U.K. manufacturing sector expanded at the slowest pace in three months in July.

The pan-European Stoxx Europe 600 index was down 0.28 percent at 390.50 in late opening deals after rising 0.2 percent on Tuesday.

The German DAX was declining 0.4 percent and the U.K.'s FTSE 100 was down over 1 percent while France's CAC 40 index was little changed with a negative bias.

Anglo American, Antofagasta and Glencore dropped 2-3 percent in London as base metal prices weakened after reports the U.S. may propose a higher 25 percent tariff on $200 billion of Chinese imports.

BP Plc shed 1.8 percent and Tullow Oil declined 2.1 percent as oil extended declines on data showing a surprise rise in U.S. stockpiles of crude.

Paper and packaging group Smurfit Kappa rallied 2.3 percent after it posted 5 percent revenue growth in the first half of the year.

Power provider Aggreko soared 10 percent and lender Lloyds Banking Group advanced 1.8 percent after posting solid first-half results.

Outsourcer Capita plunged 7.3 percent after lowering profit guidance.

ArcelorMittal advanced 1.2 percent after its second-quarter earnings topped forecasts.

Airline Air France-KLM soared 5.6 percent after its Q2 operating profit came in above expectations.

Building materials company Compagnie de Saint-Gobain lost about 1 percent. The company has acquired Germany-based HKO for an undisclosed amount.

German engineering group Thyssenkrupp dropped 2.3 percent after cutting its profit guidance for the current 2017/18 year.

Dialog Semiconductor soared 8.3 percent in Frankfurt. The company said it has ended talks to buy Synaptics.

Read the original article on RTTNews (http://www.rttnews.com/2921291/european-shares-slide-amid-trade-worries.aspx)

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This article appears in: Stocks , World Markets , Politics , Oil

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