UPDATE 2-Trade war dents European shares while M&A boosts Sky, Randgold

  • Reuters
  • Stock Market News
UPDATE 2-Trade war dents European shares while M&A boosts Sky, Randgold
Credit: © Reuters.

* STOXX down 0.6 pct

* Autos lead sectoral fallers

* Sky jumps, just shy of offer price

* Randgold spikes on Barrick deal

* Crude price jump boosts oil stocks (Updates prices, adds details)

By Helen Reid and Danilo Masoni

LONDON, Sept 24 (Reuters) - The U.S.-China trade war dented European stocks on Monday after tariffs from the world's biggest economies came into force and China cancelled planned talks, triggering new fears of a protracted, costly trade dispute.

Europe's STOXX 600 .STOXX fell 0.5 percent, extending losses after remarks from ECB President Mario Draghi bolstered expectations of rate hikes next year. among the most dependent on smooth global trade, fell the most, down 1.5 percent, while rate sensitive banks .SX7P ended down 0.8 percent after briefly turned higher following Draghi's comments. leading euro zone stocks index .STOXX50E fell 0.6 percent, breaking its longest winning streak since 1997.

"There's potential for this to be a relatively protracted period of uncertainty given that it seems unlikely you're going to come to a quick conclusion where both sides are happy," said Mike Bell, global market strategist at JP Morgan Asset Management. BMW BMWG.DE Daimler DAIGn.DE and car parts maker Valeo VLOF.PA were the top fallers on the DAX and the CAC 40 respectively.

Dealmaking drove the greatest moves across sectors, with Europe's biggest pay-TV group Sky SKYB.L soaring after Comcast's offer won an auction for the company. shares jumped 8.6 percent to 17.23 pounds, just below Comcast's cash offer of 17.28 pounds a share.

"Sky's importance in the UK remains and with Comcast (NASDAQ: CMCSA ) likely to dictate the strategy going forwards we would expect a continued focus on telecoms, broadband and mobile," Macquarie analysts said.

Randgold Resources RRS.L rose 6 percent after it agreed a share-for-share merger with Canada's Barrick Gold ABX.TO in a deal worth $18.3 billion. this signals the start of renewed consolidation in the space," said Paul Gait, senior research analyst at Bernstein.

"Clearly Barrick want the management of Randgold and the 'premium' that could be attached to someone like (Rangold CEO) Mark Bristow."

Luxury stocks were in focus after reports that U.S. fashion group Michael Kors Holdings KORS.N had agreed to take control of Italy's Versace in a deal that could value the company at $2 billion. Kering PRTP.PA and LVMH LVMH.PA outperformed the broader market, ending up 0.4 percent and flat respectively, while Hugo Boss BOSSn.DE was down 1.6 percent.

British travel operator Thomas Cook (NS: THOM ) Group TCG.L sank 28.1 percent after slashing its profit outlook, blaming a hot summer in northern Europe for weaker holiday demand in the late August-September season. Cook peer TUI TUIT.L fell 2.9 percent.

Shares in Danish medical equipment firm Coloplast COLOb.CO fell 1.4 percent after Berenberg analysts cut their recommendation on the stock to "sell". and gas stocks .SXEP supported the market, up 1.1 percent as crude prices jumped more than 2 percent to a four-year high after Saudi Arabia and Russia ruled out any immediate increase in production. firms Saipem SPMI.MI and OMV OMVV.VI were among top European gainers, up 3.6 percent and 3.9 percent respectively.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or


Related Articles