* Trade anxiety looms on mixed signals from Washington
* Fed quashes bets on half-point July rate cut
* German shares outperform on Thyssenkrupp jump
* Adidas (DE: ADSGN ) 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. 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. 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.
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.