CORRECTED-UPDATE 2-Trade woes, HK unrest knock European shares off 4-yr peak; Spain lags

(Corrects to "Madrid" from "Rome" in paragraph 1, removes
subhead)
* Trump provides no new details on trade negotiations with
China
* Hong Kong-exposed banks HSBC, Stan Chart fall
* Spanish stocks extend losses after formation of new
coalition
* Tullow slumps on cutting oil production forecast

By Agamoni Ghosh
Nov 13 (Reuters) - European shares retreated from four-year
highs on Wednesday, as ambiguity over a U.S.-China trade deal
and intensifying unrest in Hong Kong kept investors at bay,
while Spanish stocks underperformed as Madrid braced for more
political uncertainty.
The pan-European STOXX 600 index .STOXX fell 0.2% with
trade-sensitive autos .SXAP and miners .SXPP hurt as a much
awaited speech by U.S. President Donald Trump gave scant clues
on the progress of a trade deal with China.
European indices had rallied to their highest levels in four
years, just 2% short of reclaiming their record highs, on the
prospects of a 'Phase 1' trade deal being finalised between
Washington and Beijing and some better-than-expected earnings.
"This suggests that the foundations for market recovery over
the past few weeks were not particularly robust," said Will
James, senior investment director, European equities, at
Aberdeen Standard Investments.
Earnings expectations for European listed companies for the
third quarter improved, but not enough for the region to escape
the corporate recession it is stuck in, the latest data from
Refinitiv showed. "The underlying question now remains, if the strength in the
global economy is good enough for a recovery even if we get some
kind of resolution on the trade front," James said.
Banks .SX7P were the biggest drag on the benchmark index.
Those with significant exposure to Hong Kong, such as HSBC
HSBA.L and Standard Chartered STAN.L , weighed as parts of
the Asian financial hub were paralysed. Tullow Oil TLW.L slumped 21% after cutting its 2019 oil
production and free cash flow forecasts and dragged the oil and
gas sector .SXEP down 0.6%.
A 23% jump in the shares of medical equipment maker Ambu
AMBUb.CO due to an early launch of duodenoscope stood out
among positives, while a clear move into defensive stocks like
food and beverage .SX3P and healthcare .SXDP underlined
muted risk appetite.
Spanish stocks .IBEX led losses among regional peers, down
1.3%, extending a slide after Socialists and far-left Unidas
Podemos formed a new coalition on Tuesday. The unexpectedly fast preliminary agreement was formed
between two parties that recently refused to work together.
Ratings agency Fitch said on Wednesday that political
stability for the euro zone economy remains uncertain as forming
a lasting majority government will be challenging.
Focus will now be on German GDP numbers on Thursday that are
expected to show a technical recession for Europe's largest
economy, which analysts say is mostly baked in by markets.