European Stock Fell due to soft Chinese industrial data and ongoing trade war
European shares retreated from three-week highs on Wednesday as this month's recovery faded due to soft Chinese factory activity data and more frictions between Washington and Beijing on trade. The previous session witnessed the peak rates of certain indices. Europe's pan-regional STOXX 600 was among them, it gained 4.5% this month, undoing most of its progress reached in May that was its worst monthly performance in more than two years.
The STOXX 600 fell 0.44% by 0816 GMT, tracking Asian markets lower, with the tariff-sensitive technology sector down 0.76%. "The markets ... had a very strong start to the month, there is no real reason for them to keep going at the moment," said Connor Campbell, an analyst at Spreadex in London, pointing to U.S. inflation numbers later in the day as the next possible driver.
Also pressuring the tech sector was an almost 1% drop for Dassault Systemes' after the French technology company agreed to buy U.S. software firm Medidata Solutions in a deal worth $5.8 billion. Chipmakers, which get a huge portion of their revenue from China, fell, with AMS AG and STMicroelectronics declining about 0.5%.
With under three weeks to go before proposed talks between U.S. and China, expectations for progress toward ending the trade war are low and sources say there has been little preparation for a meeting even as the health of the world economy is at stake.