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European shares fall as U.S.-China tensions, virus cases rise

Published 18/08/2020, 08:28
© Reuters.
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(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
Aug 18 (Reuters) - European shares fell on Tuesday as
investors worried about escalating U.S.-China tensions and a
resurgence in regional coronavirus cases, knocking shares of
growth-sensitive cyclical sectors lower.
The pan-European STOXX 600 index .STOXX fell 0.5% by 0713
GMT, with banks .SX7P , energy firms .SX7E , insurers .SXIP
and automakers .SXAP falling between 0.8% and 0.9%.
Asian stocks made cautious gains after the Trump
administration said it will tighten curbs on China's Huawei
Technologies Co HWT.UL , to crack down on its access to
commercially available chips, while ratcheting up tensions with
Beijing. UK-listed miner BHP Group BHP.AX , BHPB.L slipped 2.2% as
it reported a 4% drop in annual profit that also missed
analysts' estimate. It also warned that most major world
economies except China will have to bear the brunt of a
coronavirus-led downturn this year. Danish Jewellery maker Pandora PNDORA.CO tumbled 5.9% as
it said the number of closed shops increased slightly in August,
and the current level of store traffic is "well below" the level
before the lockdowns. Britain's Marks & Spencer MKS.L rose 1.8% after it
revealed plans to cut a further 7,000 jobs, dealing the latest
blow to the beleaguered retail sector from the COVID-19 crisis.

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