UPDATE 2-European shares retreat as Trump's China response awaited

  • Reuters
  • Stock Market News
UPDATE 2-European shares retreat as Trump's China response awaited
Credit: © Reuters.

(For a live blog on European stocks, type LIVE/ in an Eikon news window)

* Automakers, travel and bank stocks lead declines

* Coffee maker JDE Peet's surges in market debut

* STOXX 600 logs monthly gain of 3%

(Updates to market close)

By Sruthi Shankar

May 29 (Reuters) - European shares fell on Friday, with investor nerves ahead of U.S. President Donald Trump's response to China over its national security law for Hong Kong taking some of the shine off May's stock rally.

The pan-European STOXX 600 index .STOXX fell 1.4%, with the week's outperformers -- travel & leisure .SXTP , banks .SX7P and automakers .SXAP -- leading the decline.

Trump said he would hold a news conference on China later on Friday. Investors fear a U.S. response could further damage Sino-U.S. relations and cloud the prospect for economic recovery from a coronavirus-led slump. warned of countermeasures, and added that a U.S. bill proposing to sanction Chinese officials over their treatment of the Uighur minority severely interfered in its internal affairs. press conference could well up the ante if President Trump signs off on that bill as well as implement further measures that might hint that the U.S. is keen to send the Chinese a message," said Michael Hewson, chief market analyst at CMC (NS: CMC ) Markets.

Hopes of a global economic recovery, as policymakers unleashed stimulus programmes and several countries emerged from lockdowns, helped the STOXX 600 mark a 3% gain in May.

Germany's auto-heavy DAX .GDAXI outperformed with a 6.8% monthly rise as many investors bought beaten-down cyclical stocks after improving economic data.

Coffee maker JDE Peet's BV JDEP.AS , one of the few big companies to go public during the coronavirus crisis, jumped 13.8% on its market debut, valuing it at 15.6 billion euros ($17.3 billion). decliners, Hugo Boss AG BOSSn.DE fell 9.1% after Jefferies downgraded the stock to "hold", saying its performance improvement will be derailed by two years due to the pandemic. SA RENA.PA slid 7.7% on news it was launching talks with unions to restructure several French car plants and confirmed plans to cut around 15,000 jobs worldwide.

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

Error: File type not supported

Drop an image here or

100

Related Articles