- Title: European shares dip as shrinking German economy stokes slowdown fears
- Date: 14th August 2019
- Summary: WOLFSBURG, GERMANY (FILE - OCTOBER 21, 2015) (REUTERS) VARIOUS OF VOLKSWAGEN-STAFF CHECKING NEW VW CARS READY FOR DELIVERY CAR WITH VW-LOGO VW-EMPLOYEE VW-LOGO MUNICH, GERMANY (FILE - MAY 19, 2015) (REUTERS) VARIOUS OF ON FREIGHT WAGONS BERLIN, GERMANY (FILE - SEPTEMBER 20, 2018) (REUTERS) VARIOUS OF CONSTRUCTION SITE
- Embargoed: 28th August 2019 10:30
- Keywords: markets Frankfurt DAX European shares growth outlook global slowdown automotive sector
- Location: FRANKFURT & HAMBURG & EMMERICH & INGOLSTADT & WOLFSBURG & MUNICH & BERLIN, GERMANY
- City: FRANKFURT & HAMBURG & EMMERICH & INGOLSTADT & WOLFSBURG & MUNICH & BERLIN, GERMANY
- Country: Germany
- Topics: Economic Events
- Reuters ID: LVA005AS6UW7H
- Aspect Ratio: 16:9
- Story Text: European shares fell on Wednesday (August 14), as a shrinking German economy and weak industrial data from China stoked fears of a global slowdown, forcing investors to turn defensive and overshadowing a temporary U.S.-China tariff truce.
The pan-European STOXX 600 index fell 0.2% by 0820 GMT, with banks weighing on the benchmark, while the defensive healthcare, utilities and telecoms sectors outperformed.
U.S. President Donald Trump's administration delayed imposing a 10% tariff on certain Chinese products, including laptops and cell phones, beyond September on Tuesday, providing battered equity markets world-wide some relief.
"China keeps on getting stronger and is attacking us directly. We have to wake up now and take action for the German industry", said Robert Halver, head of capital markets analysis at Baader Bank.
The Frankfurt-dominated auto index fell more than 1%, while borrowing costs in Germany fell to fresh record lows following the GDP data, reinforcing expectations for monetary policy stimulus soon.
Market participants are now keeping watch for a read-out of second quarter GDP numbers in the eurozone due later in the day.
(Production: Hakan Erdem, Ulrike Heil)
- Copyright Holder: FILE REUTERS (CAN SELL)
- Copyright Notice: (c) Copyright Thomson Reuters 2019. Open For Restrictions - http://about.reuters.com/fulllegal.asp
- Usage Terms/Restrictions: None