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LONDON:
Europeanshares edged up
on Thursday after the latest round of US-China
tariffs kicked in, hurting
trade-sensitive
autos stocks but boosting demand for sectors seen as more insulated from an escalating
trade dispute.
The STOXX 600 was up 0.2 per cent, buoyed by tech, healthcare, and consumer staples stocks - "defensives" which investors reach for as safer bets in times of uncertainty for their strong earnings growth and
high dividend payouts.
The United States and China implemented 25 per cent
tariffs on $16 billion worth of each other's goods early
on Thursday, bringing to $50 billion the value of imports subjected to
tariffs on either side since early July, with more in the pipeline.
Autos stocks were the worst-performing for a second day.
On Wednesday a surprise profit warning from tyre maker Continental sank the stock and hit the sector, already one of the worst impacted by
tariff fears.
Continental fell a further 2.8 per cent, bottom of the DAX, taking its losses to 15 per cent since Wednesday's open.
Carmakers Daimler, BMW and Volkswagen fell 0.6 to 0.8 per cent, while Valeo, Renault, Michelin and Peugeot were the biggest CAC 40 fallers.
Outside of
trade war moves,
shares in budget airline Ryanair jumped 4.7 per cent to the top of the STOXX after the Irish pilots' union Forsa said it has reached an agreement in an ongoing labour dispute.
Danish medical equipment, supplies and distribution company Ambu sank more than 10 per cent at the open after its third-quarter results, with traders saying earnings and revenues numbers had missed analysts' targets.
Gaming and casino software company Playtech rose 4.8 per cent after its half-year profit loss came in smaller than expected.
It said competition and tougher regulation in Asian markets had caused the fall in profits.
Swiss telecoms group Sunrise Communications rose 5 per cent after it increased its guidance for full-year 2018 EBITDA.
Building materials firm CRH also gained 3.7 per cent after reporting first-half margins held steady and striking a positive tone for earnings in the second half of the year.
