Auto stocks lead European shares lower amid U.S.-China trade standoff

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May 13 (Reuters) - European shares extended losses early on
Monday from the biggest weekly slump this year as the U.S.-China
standoff quelled hopes that the two largest economies will be
able to resolve their trade dispute anytime soon.
The STOXX 600 index .STOXX fell 0.1 percent by 0720 GMT
with Germany's trade-sensitive DAX .GDAXI under pressure more
than its peers.
Asian shares fell and U.S. stock futures also pointed to a
sharply lower open as United States and China appeared at a
deadlock over trade negotiations with Washington demanding
promises of concrete changes to Chinese law and Beijing said it
would not swallow any "bitter fruit" that harmed its
interests. The tariff-exposed auto sector .SXAP was the biggest loser
among European sub-sectors, especially weighed down by shares of
Daimler AG DAIGn.DE .
Over the weekend Reuters reported that China's BAIC Group
may be seeking to buy a stake of up to 5% in the Mercedes-Benz
owner. Daimler AG DAIGn.DE and BMW BMWG.DE are putting their
investments in Hungary on hold as the industry struggles with
lower demand and the threat of higher auto tariffs by the United
States, Handelsblatt reported. Among the biggest decliners was Thyssenkrupp TKAG.DE down
4 percent. The German industrial giant said it would seek
partners for its steel operations after abandoning a European
merger with India's Tata Steel . TISC.NS It's shares posted their best one-day surge on Friday,
helped by short-covering on the news that the conglomerate plans
to list its successful elevators business. Elsewhere, Metro Bank Plc MTRO.L slumped 8 percent after
the company said its plan to raise about 350 million pounds
($455 million) of equity capital to support its growth is well
advanced. Britain's largest energy supplier Centrica Plc CNA.L
climbed on top of the STOXX 600 after it maintained its
full-year outlook despite warning about a challenging trading
environment due to a national price cap on energy bills.
European stock market operator Euronext ENX.PA rose 2
percent after winning a regulatory nod from Norway's finance
ministry to buy up to 100% of Oslo Bors OSLO.NFF .