European Shares Tumble As Risk Appetite Wanes

(RTTNews) - European stocks fell sharply on Wednesday to hover near two-week lows as trade and growth worries sapped investors' appetite for risk.

There is skepticism and confusion about the truce between the U.S. and China on trade after China promised action but gave no details on the tentative truce.

The bond market is flashing warning signs after the U.S. Treasury curve inverted for the first time in more than a decade.

Investor confidence is also waning due to Brexit-related uncertainty after Theresa May's government suffered three successive defeats in the British Parliament on Tuesday.

The pan-European Stoxx 600 index was down 0.9 percent at 355.21 after falling over 1 percent to hit its lowest level since November 23 earlier in the day.

The German DAX was down little over 1 percent, France's CAC 40 index was losing 1.1 percent and the U.K.'s FTSE 100 was declining 1.2 percent.

BP Plc fell 1.3 percent, Tullow Oil shed 1.2 percent and Royal Dutch Shell lost almost 2 percent as oil prices dropped around 1 percent on concerns over rising U.S. inventories and a global-selloff in equity markets amid worries over an economic slowdown.

Miners Anglo American, Antofagasta and Glencore declined 1-2 percent.

Shire Plc rallied 2.6 percent after Japan's Takeda Pharmaceutical Company announced that its shareholders approved resolutions related to the proposed acquisition of the U.K drugmaker.

Automaker Renault shed 0.9 percent in Paris and rival Peugeot lost 1.8 percent as the White House revoked its threat of European auto tariffs.

Germany's Daimler was little changed on a Bloomberg report that it is considering boosting its stake in a joint venture with Chinese partner BAIC Motor Corp.

Air France KLM advanced 1.7 percent after the leader of its pilots' union lost his bid for re-election.

In economic releases, Markit reported that its Eurozone PMI composite output index fell to 52.7 in November from October's 53.1. U.K. service sector PMI slumped to the weakest since the aftermath of the Brexit vote.
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