(Bloomberg) -- European stocks fell on Thursday, dragged lower by downbeat earnings updates from companies including Glencore Plc and Munich Re, while U.S.-China trade tensions were also in focus.
The Stoxx Europe 600 Index ended 0.7% lower. Miners slumped the most, trimming sharp gains made on Wednesday, after Glencore scrapped its 2020 dividend. Insurers also underperformed after AXA SA abandoned some growth targets and canceled a payout, while Munich Re withdrew its 2020 guidance. Credit Agricole SA dropped after setting aside more in bad-loan provisions than expected.
Equities have lost steam after surging to a four-month high in late July, as investors question whether much of the economic recovery is already priced in and assess the risk of it being derailed by rising coronavirus cases. Adding to geopolitical tensions, U.S. Secretary of State Michael Pompeo on Wednesday urged American companies to bar Chinese applications from their app stores.
There's “weaker market sentiment following mixed developments on multiple fronts,” said Pierre Veyret, a technical analyst at ActivTrades. “Rising U.S.-Sino tensions, increasing virus cases on the old continent and the recent batch of mixed macro data are some of the clouds darkening the sky for investors.”
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