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(Reuters) – European companies, miners and chip makers on Friday accused the biggest losses in seven months on Friday after Washington announced new tariffs on Chinese products, raising fears that global growth is no longer penalized.
The European Stoxx 600 index ended the trading session down 2.5%, to its lowest level in six weeks. The German Dax, the sensitive trade group, fell by 3.1%, while luxury goods companies, which derive a significant portion of their revenue from China, pushed the French CAC 40 to the down 3.6%.
Trump ended a temporary trade cease between the two countries on Thursday by announcing a 10% tariff on Chinese exports to the United States worth $ 300 billion as of September 1, pushing Beijing to warn that she would take countermeasures.
Investor anxiety grew after Bloomberg announced that Trump would make a statement on trade with the European Union at 17:45 GMT on Friday.
The tech sector, which includes shares of chip makers heavily reliant on China for its revenue, fell 3.7%.
The shares of Celtic, Infineon, ST Micro and EMLL fell between 4.8 and 6.3%.
The core index is among the worst among European sectors, closing down 4.6%.
Expectations of lower lending costs on European bonds led to further declines and exerted pressure on bank stocks. The sector has also been affected by a range of weak economic results.
The Royal Bank of Scotland lost 6.5% after announcing that a deterioration in the economic situation before Britain's breakup with the European Union would likely affect the profits of the company. ;next year. The French Crédit Agricole fell by 4.9%.
Equities in the automotive sector also declined. The Italian luxury car manufacturer Ferrari has failed to raise its forecasts for 2019 despite solid results in the first half.
The company fell 4.4%.
Areas such as utilities, health care and telecommunications, which appear less vulnerable in times of economic turbulence, have experienced limited losses among key indicators.
(Reuters)
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