European Shares Retreat As Trade Worries Mount
(RTTNews) - European stocks fell on Monday as the U.S.-China trade talks ended without an agreement and expectations over a deal between Labour and the Conservatives faded, making British Prime Minister Theresa May's position increasingly vulnerable.
The pan European Stoxx 600 was down half a percent at 375.13 after rising 0.3 percent on Friday.
The German DAX was losing 0.7 percent and France's CAC 40 index was declining 0.6 percent while the U.K.'s FTSE 100 was marginally higher.
The pound fell against its major counterparts after Bank of England Deputy Governor Ben Broadbent cautioned that a prolonged delay to Brexit would damage the long-term economic outlook and asserted that further interest rate hikes would be "gradual."
Metro Bank slumped 4 percent in London on equity dilution worries.
Britain's largest energy supplier Centrica advanced 1.8 percent after keeping its full-year outlook.
Dignity, a provider of funeral related services, lost 4.4 percent after a profit warning.
Stock market operator Euronext rallied 2 percent in Paris after it won regulatory approval from Norway's finance ministry to buy up to 100 percent of Oslo Bors.
Daimler lost 2.6 percent on reports that China's BAIC Group is seeking to buy stake of up to 5 percent in the German automaker.
In economic releases, France is forecast to expand at a steady pace in the second quarter, according to a monthly survey from Bank of France.
Gross domestic product is expected to grow 0.3 percent in the second quarter, the same rate as registered in the first quarter.
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