UPDATE 2-European stocks edge down on Brexit, trade war fears

* STOXX 600 ends marginally lower
* Banks, Brexit-sensitive stocks lead losses
* German, British shares post gains
* Marks & Spencer tumbles after decline in profit

(Updates to closing)
May 22 (Reuters) - European shares edged lower on Wednesday
on unease over developments in the U.S.-China trade war and
Britain's uncertain departure from the European Union.
The pan-European STOXX 600 index .STOXX closed down 0.08%
with losses on Italy's MIB .FTMIB and France's CAC .FCHI
offset by gains in Britain's FTSE 100 .FTSE and Germany's DAX
.GDAXI .
Banks and Brexit-sensitive stocks led losses as some
investors switched into safe-haven euro zone bonds as pressure
grew on UK Prime Minister Theresa May to resign after lawmakers
in her own party rejected her compromise deal on exiting the EU.
A Report that the United States is considering curbs on
Chinese video surveillance firm Hikvision 002415.SZ added to
investor concerns. "Sentiment remains fragile as investors digest the changing
face of the trade dispute from broad sweeping tariffs to direct
action against single Chinese companies," Jasper Lawler, head of
research at futures brokerage London Capital Group, wrote in a
note.
Europe's banking index .SX7P fell 1.2% to an over
four-month low with Banco Santander SAN.MC , Lloyds LLOY.L
and Barclays BARC.L shedding between 1.1% and 2.7%.
London's FTSE 100 pared most of its early gains to close
0.07% higher as declines in Brexit-sensitive stocks such as
housebuilders and retailers accelerated. The exporter-heavy
index had outperformed its peers earlier in the session
bolstered by a weak pound.
Homebuilders Taylor Wimpey TW.L , Berkeley Group BKGH.L
and fell sharply, while retailers were led
lower by Marks & Spencer MKS.L after it reported a third
straight decline in full-year profit.
Germany's trade-sensitive DAX .GDAXI closed 0.2% higher,
recovering from a 0.7% fall earlier in the day.
Payments company Wirecard's WDIG.DE jumped 5.9% on a
partnership deal in India over identity cards. At the top of the STOXX 600 was online financial trading
platform IG Group Holdings Plc IGG.L , after it unveiled a plan
to drive growth even as it forecast a sharp fall in full-year
net trading revenue and operating profit. Danish IT software company SimCorp SIM.CO soared 11% as it
affirmed guidance, dispelling market fears of an outlook cut
after reporting quarterly results that beat expectations.