* Traders nervous about China's response to U.S. HK law
* Trade-sensitive autos, miners lead declines
* German shares shrug off upbeat unemployment data
* Norway's DNB slips after police investigation
* Britain's Ocado logs best day since February (Updates to close)
By Sagarika Jaisinghani and Shreyashi Sanyal
Nov 29 (Reuters) - European shares ended the week with their worst day this month as a clutch of fairly upbeat economic data on Friday failed to assuage investor concerns about a setback in Sino-U.S. trade talks after China's rebuke over a U.S. law on Hong Kong.
The pan-European STOXX 600 index .STOXX fell 0.4%, but still posted its biggest weekly gain in three on a boost from positive trade headlines in earlier sessions.
Trade-sensitive miners .SXPP and auto parts makers .SXAP shed more than 1% each on Friday, while export-laden Frankfurt shares dipped 0.1% even as unemployment in Germany - Europe's powerhouse - unexpectedly declined in November. also shrugged off data showing euro zone inflation accelerated faster than expected in November, as analysts warned the figures were unlikely to suggest that a wider economic downturn in the trading bloc was bottoming out.
"We shouldn't get carried away," said Jack Allen-Reynolds, senior economist at Capital Economics.
"One-off factors have caused services inflation to spike in the past before falling back again. And other data released this morning suggest that wage pressures - one of the main drivers of services inflation - are easing."
European shares crawled toward a record high earlier this week on signs of progress in U.S.-China trade negotiations, but sentiment dulled on Thursday as a U.S. law backing pro-democracy protesters in Hong Kong drew a warning of "firm counter measures" from Beijing.
"This Hong Kong bill is a different dimension to the trade angle and it could potentially cause some very serious damage to the trading relations between the United States and China," said David Madden, analyst at CMC (NS: CMC ) Markets.
Traders had earlier expected an initial trade agreement to be signed by mid-November. In the absence of a deal, U.S. tariffs are due to take effect on Chinese imports on Dec. 15.
In corporate news, Norway's largest bank DNB DNB.OL fell 6% to its lowest level in more than a month after police said they were investigating whether any laws were broken in its handling of payments from an Icelandic fisheries firm to Namibia. DNB has denied wrongdoing and said it is cooperating with the Norwegian police investigation.
The stock closed at the bottom of the STOXX 600 index in its busiest day in three years.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.