European shares dip as focus turns to Sino-U.S. trade dispute
November 27, 2018
European shares fell in morning deals on Tuesday as the focus turned to possible developments in the Sino-U.S. trade dispute after a fresh threat from Washington to impose tariffs on more Chinese imports, while Thomas Cook tanked on a profit warning.
The pan-European STOXX 600 (STOXX) benchmark was down 0.3 percent by 08:22 GMT, pulling back from the one-week high hit in the previous session on optimism over Brexit and a possible Italian budget deal with Brussels.
U.S. President Donald Trump said on Monday he expected to move ahead with raising tariffs on $200 billion in Chinese imports to 25 percent from 10 percent currently.
Among the leading sectoral fallers on Tuesday were miners (SXPP), down 0.9 percent as copper prices slid for the third day, pressured by Trump comments, while the export-oriented auto sector (SXAP) fell 0.8 percent.
Travel stocks were under pressure after Thomas Cook cut its profit forecast for the second time in two months and suspended its dividend after the hot British summer deterred holidaymakers from going abroad.
Thomas Cook (L:TCG) shares tanked 30 percent. Its slump dragged lower shares in peer companies such as TUI (DE:TUIGn), which fell 7.3 percent to the bottom of the STOXX 600.