European shares fall as trade tensions weigh
Reuters
Published Mar 02, 2018 03:46AM ET
European shares fall as trade tensions weigh
MILAN (Reuters) - European shares fell to new two-week lows on Friday after Donald Trump said the United States would impose tariffs on imported steel and aluminum, prompting worries over a global trade war.
Such concerns sparked a broad sell off in Europe, sending the pan-regional STOXX 600 (STOXX) index down 0.7 percent by 0825 GMT. Germany's DAX (GDAXI) fell 1.1 percent and Britain's FTSE (FTSE) dropped 0.3 percent.
All sectors were trading in negative territory, with autos (SXAP) leading the drop and weighed down by a 3.7 percent slump in Fiat Chrysler (MI:FCHA) shares on concerns that the U.S. tariff move could increase raw material costs.
Steel and aluminum stocks were also generally lower with ArcelorMittal (AS:MT), Salzgitter (DE:SZGG) and Norsk Hydro (OL:NHY) all down around 2 percent. Steel pipes maker Tenaris (MI:TENR), which has production and marketing facilities in the United States, however, rose around 0.6 percent.
Precious metal miners outperformed as investors sought refuge in safe-haves assets such as gold following Trump's announcement. Randgold (L:RRS), Centamin (L:CEY) and Polymetal (L:POLYP) all rose more than 1.7 percent.
Swedish radiation therapy equipment maker Elekta (ST:EKTAb), up 9.9 percent, led gainers on the STOXX after it reported above-forecast earnings, while IMI (L:IMI) dropped 7.5 percent as its trading update disappointed.
The STOXX was on track to end the week, already marked by worries over faster rate hikes in the United States, down more than 2 percent.
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Written By: Reuters
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