European shares are broadly higher Wednesday, but they are losing some ground as trade tensions continue to simmer. The tech sector is leading afternoon losses following China’s decision to ban Micron from selling chips there.
By 1350 BST, the EUROSTOXX 600 was up just 0.08%, while the EUROSTOXX 50 had gained 0.17%. Regional bourses, meanwhile, were a little mixed. The German DAX lost 0.26%, while the French CAC rose 0.14% and the Spanish IBEX was 0.92% in the green.
China’s Micron ban
After a day or two with few new trade-related developments, China’s announcement that US chipmaker Micron can no longer sell goods in the country has shaken investors.
The decision came after Taiwan-based chipmaker United Microelectronic Corporation (UMC) sued Micron for patent infringement. UMC’s case included requests that Micron stop making, importing, or selling these products.
“UMC is pleased with today's decision,” UMC president Jason Wang said in a statement. “UMC invests heavily in its intellectual property and aggressively pursues any company that infringes UMC's patents.”
US President Donald Trump also alluded to the unsettled trade situation with a tweet Tuesday concerning Harley Davidson’s decision to move more manufacturing of its iconic motorcycles out of the US.
“Now that Harley-Davidson is moving part of its operation out of the US, my Administration is working with other Motor Cycle companies who want to move into the US. Harley customers are not happy with their move - sales are down 7% in 2017. The US is where the Action is!,” Trump tweeted.
While the global trade disagreements go on, there were some stock movers of note on America’s Independence Day.
Renault shares rose as the French car maker announced a new plan for electric vehicle car sharing Paris and the surrounding areas. Renault shares gained 1.73% to hit €73.65.
And, Orpea shares moved 2.02% higher to €116.30 after HSBC raised its recommendation of the French healthcare stock to ‘buy’.