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European shares hit five-month low as tariff woes loom

Published 06/09/2018, 05:45 pm
Updated 06/09/2018, 05:50 pm
© Reuters.  European shares hit five-month low as tariff woes loom
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MILAN, Sept 6 (Reuters) - European shares fell on Thursday as fresh losses in emerging markets and worries Washington will follow through on plans to levy an extra $200 billion of Chinese imports kept investors on the edge.

The pan-regional STOXX 600 .STOXX benchmark hit its lowest level since early April in early trading and was down 0.3 percent by 0714 GMT, while Germany's DAX .GDAXI and the UK's FTSE .FTSE fell 0.3 and 0.2 percent respectively.

A consultation period on the proposal to slap fresh tariffs on China ends on Thursday, paving the way for a decision although it is unclear how quickly that will happen.

Most sectors were trading in the red but basic resources stocks led the fall, dragged by a more than 3 percent drop in miner BHP Billiton, BLT.L which traded ex-dividend.

Utilities were a bright spot with Italy's state-controlled Enel ENEI.MI rising 1.6 percent after Goldman Sachs (NYSE:GS) upgraded the stock to buy, while in the UK, Centrica (LON:CNA) added 3.7 percent after the local regulator set an energy price cap that was at the lower range of analysts' expectations. gainer on the STOXX was Safran SAF.PA which rose to a fresh record high after the world's No. 3 aerospace supplier raised full-year forecasts following better-than-expected results in the first half on strong demand for spares and services.

Weir Group WEIR.L led fallers, down 5.9 percent after the maker of pipes for the energy and mining industries said there were initial signs of pricing pressure.

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