European shares retreat as trade fears, sanctions on Russia weigh

LONDON: European shares retreated across a number of sectors on Thursday as a new batch of corporate earnings triggered sharp price swings but failed to dispel fears about a tense geopolitical context with the China-U.S. trade tensions and new sanctions against Russia.

At 0725 GMT, the pan-European STOXX 600 was down 0.4 per cent with heavy losses in Paris and London where the CAC 40 and the FTSE both slipped 0.6 per cent.

The on-going corporate season also prompted steep moves among companies publishing second-quarter results.


German sportswear firm Adidas posted the best performance after it reported a better-than-expected second quarter and saw its shares jump 9 per cent.

Still in Germany, TUI shares fell 8 per cent after its third-quarter results disappointed as it blamed a summer heatwave keeping Europeans at home instead of traveling.

Investors also welcomed news that the chief executive of Pandora's CEO was stepping down, days after a profit warning and announcement of job cuts.

Shares in the Danish jewellery maker surged 6.5 per cent.