European stocks dip as U.S. sanctions on Huawei add to trade anxiety

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May 16 (Reuters) - European shares retreated on Thursday
after Washington blacklisted Chinese telecoms giant Huawei,
adding another confrontational element to the U.S.-China trade
dispute.
The STOXX 600 .STOXX index fell 0.4% by 0727 GMT with
losses led by Germany's DAX .GDAXI , which is sensitive to
tariff and China-related news.
The U.S. Commerce Department said it was adding Huawei
Technologies Co Ltd HWT.UL and 70 affiliates to its Entity
List, which bans the company from acquiring components and
technology from U.S. firms without government approval.
News on Wednesday that U.S. President Donald Trump was
planning to delay the imposition of tariffs on imported cars and
parts helped European markets swing higher late in the session.
But European automakers and their suppliers .SXAP
retreated again on Thursday.
Deal-making and earnings reports provided a second focal
point for regional investors.
Thyssenkrupp TKAG.DE was the top STOXX 600 performer after
Reuters reported that Finland's Kone KNEBV.HE might bid for
the German conglomerate's 14 billion euro ($15.7 billion)
elevators division. Kone shares jumped 5%.
Nestle SA NESN.S said it had entered exclusive talks to
sell its skin health business to a consortium led by private
equity firm EQT Partners in a deal worth 10.2 billion Swiss
francs ($10.12 billion). Its shares were trading
flat. Britain's Burberry BRBY.L dropped 4% after reporting
broadly flat full-year revenue and profit and said it expected
similar this year. Its results knocked down its Paris-listed
peers including LVMH LVMH.PA , Hermes HRMS.PA and Kering
PRTP.PA between 0.5% and 1%.
Britain's CYBG Plc CYBGC.L , owner of Clydesdale and
Yorkshire Bank, dropped more than 3%, a day after its results
showed it swung to a profit in the first half of the year.
Thomas Cook's TCG.L shares tumbled about 20% after the
travel group said economic and political uncertainty would
impact its profits this summer after it posted an increase in
losses. Basic material stocks .SXPP rose after Shanghai aluminium
futures prices hit their highest since October 2018 after a
refinery shutdown in China. MET/L