UPDATE 2-European stocks fall for fourth day on Fed, trade anxiety

* Trade anxiety looms on mixed signals from Washington
* Fed quashes bets on half-point July rate cut
* German shares outperform on Thyssenkrupp jump
* Adidas gains after Berenberg upgrades to 'buy'

(Updates to close)
By Susan Mathew
June 26 (Reuters) - European shares eased in low volumes on
Wednesday, pulled down by disappointment about U.S. Federal
Reserve comments on interest rate cuts overnight as well as
mixed signals from Washington on the Sino-U.S. trade dispute.
The pan-European STOXX 600 index .STOXX fell 0.3% as it
extended losses to a fourth day, on course to end a three week
gaining streak fueled by expectations of more monetary stimulus
globally and hopes of a revival in Sino-U.S. trade talks.
Real estate, healthcare and utilities led declines on
Wednesday, while banks - which tend to benefit from higher
interest rates - auto and energy stocks, outperformed.
Drugmakers Novartis NOVN.S and Roche ROG.S fell 2% and
0.7% respectively, and weighed on Swiss shares .SSMI which
declined 0.6% amid a row over stock market equivalence between
Switzerland and the European Union. "It feels like there is a bit of a rotation in terms of what
has been up in the run up to this weekend's event has started to
fade and vice and versa," said Mark Taylor, sales trader at
Mirabaud Securities in London.
The healthcare sector - a defensive play - gained around 5%
over the last three weeks.
On the Sino-U.S. trade front, U.S. Treasury Secretary Steve
Mnuchin said U.S. and China were 90% through in making headway
in resolving the trade dispute. MKTS/GLOB
But President Trump later threatened to impose more tariffs
on Chinese goods, ahead of a highly anticipated meeting between
President's Donald Trump and Xi Jinping over the weekend.
"It's always been this last 10%....Now its a case of you'd
rather see the actual event now that it's a just few days away,
than listen to a continued barrage of rhetoric," Mirabaud's
Taylor said.
The trade comments came after the Fed quashed market hopes
for a 50 basis point cut in its key borrowing rate next month
late on Tuesday.
European markets saw their biggest sell-off in more than two
years in May, hit by a cocktail of concerns over trade tensions,
the global economic cycle and Brexit, and are on course to
reverse those losses, but traders say the mood is shaky.
"We're pleased that the macro has been stabilised thanks to
central banks, but that doesn't mean we are suddenly serene
about putting our foot on the accelerator in equities," said
Guillaume Lasserre, chief investment officer at Lyxor Asset
Management.
On the day, German shares .GDAXI outperformed, thanks to a
near 7% jump in Thyssenkrupp TKAG.DE spurred by a report of a
possible offer from Kone KNEBV.HE for the company's elevator
business.