European shares step back, Trump's China response awaited

May 29, 2020: European shares pulled back on Friday as market participants turned their focus to Washington's response to the Chinese parliament's approval of a national security law for Hong Kong, but major indexes were on course to finish May with solid gains.

The pan-European STOXX 600 index fell 0.9% by 0709 GMT, with U.S. President Donald Trump due to announce his policy moves that could escalate tensions between Washington and Beijing.

Automobiles and parts makers led declines with a 2.5% drop, while travel & leisure and banks fell more than 2% each.

Still, hopes of a global economic recovery as policymakers unleashed stimulus programmes and several countries emerged from lockdowns put the STOXX 600 on course for a 3.6% monthly gain.

Hugo Boss AG fell 4.4% after Jefferies downgraded the stock to "hold", while Renault SA slid 4.5% on news that it was launching talks with unions to restructure several French car plants and confirmed plans to cut around 15,000 jobs worldwide.

Coffee maker JDE Peet's, one of the few big companies to go public during the coronavirus crisis, jumped 11.3% at the start of trading on Euronext in Amsterdam.

Reuters