US-China tensions weigh on European stocks; Centrica soars – Gulf Today

US-China tensions weigh on European stocks; Centrica soars – Gulf Today

US-China tensions weigh on European stocks; Centrica soars

an hour ago

Picture used for illustrative purpose. File

European shares fell on Friday as global sentiment soured after Beijing ordered United States to close its consulate in a Chinese city in retaliation to similar action from Washington.

The pan-European STOXX 600 index fell 1.9%, on track for its biggest one-day drop in a month, pushing it to a weekly loss for the first time in four weeks.

"There could be more impact on equities, think technology companies ... especially if the White House stops giving U.S. corporates a free pass in their dealings with China," said Stephen Innes, chief global markets strategist at AxiCorp.

While all sectors traded in the red, technology stocks such as SAP SE and ASML Holding NV led losses following a sell-off in U.S. peers overnight, while the China-sensitive basic materials sector lost 2.3%.

"What ultimately matters for growth assets is whether a geopolitical escalation morphs into economic beatdowns," Innes added.

A 750-billion euro EU recovery fund and hopes of an eventual COVID-19 vaccine had put European stocks on course to end the week higher, until a US order to shut the Chinese consulate in Houston over accusations of spying drew ire from Beijing.

Meanwhile, PMI