European shares fall as trade uncertainty remains, mixed economic data weighs

European shares are lower Friday, as continued trade tensions and weak German industrial production data weigh on sentiment.

European shares fall as trade uncertainty remains, mixed economic data weighs

European shares are trading in negative territory Friday, as investor sentiment remains downbeat amid ongoing global trade uncertainty. Meanwhile, mixed European economic data is also working to weigh on the indices.

By 1215 BST, the EUROSTOXX 600 was 0.14% lower, while the EUROSTOXX 50 lost 0.31%. Regional bourses were also in the red. The German DAX was 0.18% down, the French CAC fell 0.09% and the Spanish IBEX was off 0.60%.

Economic data details

A number of European economic data reports were published earlier Friday.

Among them was German industrial production figures, which showed a surprise 1.1% monthly drop in July. The figures also showed that exports fell 0.9% in July compared with June’s activity.

Those declines suggest that increased global trade tensions are already beginning to weigh on one of the world’s manufacturing and exporting powerhouses.

However, analysts at investment bank ING, said that the notable decline in German manufacturing and exports isn’t something to panic about – yet.

“For the time being, this week’s disappointments are not a reason to worry,” ING’s chief economist, Carsten Brzeski said. “We have got used to the ups and downs, a permanent seesaw of disappointing and impressive German macro data.”

Brzeski also said that the decline in output could simply reflect a strong build up in inventories in the first part of the year.

Despite that view, the unexpected decline in German manufacturing was among the factors behind the ongoing subdued tone among investors, Friday.

Stock movers

Against that largely downbeat backdrop at the end of what has been a broadly negative week for European indices, there were some stock declines to note.

Among them were:

  • Bayer shares fell 3.53% to €72.25.
  • Schneider Electric shares slid 3.04% to €65.78.
  • Infineon Technologies shares lost 2.30% to hit €20.00.
  • IAG shares declined 3.73% to £655.80.

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