European shares are backing down fears of a return to trade war



Al Ain newsletter Agencies
European shares closed higher on Friday, but recorded their worst weekly losses since mid-March, as escalating US-China tension added to fears that a global economic slowdown may continue for longer than feared.

The pan-European STOXX 600 index closed 0.5% higher, as mining stocks rose 2.8% after data showed that China’s industrial production increased in April faster than expected.

European semiconductor stocks took a hit on the back of recent comments on trade, with Germany’s Dialog and Celtronic shares losing 3.3% and 1%, respectively.

ST Micro Electronics chip maker fell 3%, which kept Paris shares stable.

A preliminary reading of Germany’s GDP in the first quarter of the year showed that the largest European economy contracted 2.2% in the first quarter, the largest slowdown since the financial crisis in 2009, with expectations for the worst by mid-year.

But euro zone finance ministers held a teleconference to discuss financial measures aimed at easing the economic fallout.

Der Spiegel magazine reported that German Finance Minister Olaf Schultz is planning a supplementary budget, which could include additional debt of 100 billion euros ($ 108.25 billion).


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