European shares fall as Huawei arrest fuels fresh trade worries; Ericsson up
06/12/2018 at 08:38
MILAN, Dec 6 (Reuters) - European shares fell sharply on Thursday
after the arrest of a Huawei top executive fed worries over a fresh
build-up in the Sino-U.S. trade war, hitting export-oriented tech and
Ericsson and Nokia however outperformed, both trading up
slightly in early deals, as the arrest the Chinese tech giant's CFO
piled up pressure on their biggest rival and 5G powerhouse.
By 0817 GMT, the pan-regional STOXX 600 index fell 1.2 percent,
marching towards the lowest level since December 2016 it hit during
the sell-off seen over the last two months.
The export oriented DAX index, which has also a big exposure to
China and has been hit recently by concerns over a slowdown in the
world's No.2 economy, fell 1.5 percent.
Auto stocks were the biggest sectoral fallers, down 2.7 percent
at their lowest in more than 2 years, led by a 3.4 percent drop in
German carmaker Daimler .
Tech was also heavily sold off as declines in chipmakers offset
gains in Ericsson. Huawei supplier STMicro
fell 4.2 percent.
Elsewhere, Diasorin was the biggest faller on the STOXX 600,
down 7 percent after Kepler Cheuvreux downgraded the Italian biotech
company to hold from buy.
(Reporting by Danilo Masoni; Editing by Josephine Mason)
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