Europe follows Asian stocks lower as U.S.-China tensions escalate

August 07, 2020: European shares slipped on Friday after their Asian peers were hit by a further escalation in U.S.-China tensions, but an upbeat earnings season and hopes of more stimulus kept most regional indexes on course for weekly gains.

The pan-European STOXX 600 index was down 0.2% by 0717 GMT, with banks, automakers, and oil and gas firms leading declines.

U.S. President Donald Trump on Thursday moved to ban U.S. transactions with popular Chinese apps, Tencent's WeChat and ByteDance's Tiktok, knocking 1% off Asia Pacific shares.

European markets were relatively more resilient, but Amsterdam-listed Prosus, with its biggest investment in Tencent, fell 5.8%.

British aero-engineer Rolls-Royce Holdings dropped 2.3% after a media report that activist shareholder ValueAct Capital Management sold its stake in the company.

Deutsche Telekom, which owns 43% of T-Mobile, rose 2.1% after the U.S. firm added more monthly phone subscribers than expected in the second quarter.

Reuters

Posted on: 2020-08-07T12:28:00+05:00

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