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Trade war dents European shares while M&A drives Sky, Randgold up

Published 24/09/2018, 08:29
© Reuters. Employees stand in front of an electronic board showing stock options inside the Athens stock exchange building in Athens

LONDON (Reuters) - The U.S.-China trade war bit again on Monday, denting European stock markets after tariffs from the world's biggest economies came into force and China cancelled planned talks, triggering new fears of a protracted, costly trade dispute.

Europe's STOXX 600 (STOXX) fell 0.1 percent with Germany's trade-sensitive DAX (GDAXI) down 0.3 percent. Autos and mining sectors, among the most dependent on smooth global trade, fell the furthest, down 0.8 to 0.9 percent.

The leading euro zone stocks index (STOXX50E) fell 0.3 percent, breaking its longest winning streak since 1997.

Dealmaking drove the greatest moves across sectors, with Europe's biggest pay-TV group Sky (L:SKYB) soaring after Comcast's offer won an auction for the company.

Sky shares jumped 8.6 percent to 17.23 pounds, just below Comcast's cash offer of 17.28 pounds a share.

Randgold Resources (L:RRS) topped the STOXX with a 4.4 percent gain after it agreed a share-for-share merger with Canada's Barrick Gold (TO:ABX) in a deal worth $18.3 billion.

British travel operator Thomas Cook Group (L:TCG) sank 25 percent after slashing its profit outlook, blaming a hot summer in northern Europe for weaker holiday demand in the late August-September season.

Thomas Cook peer TUI (L:TUIT) fell 3.3 percent.

Shares in Danish medical equipment firm Coloplast (CO:COLOb) fell 1.9 percent after Berenberg analysts cut their recommendation on the stock to "sell".

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