LONDON, June 3 — European shares took another leg down today as China sent another shot across Washington’s bows on trade, stirring fears of recession, while German chipmaker Infineon’s deal to buy a US peer weighed on the technology sector.
The pan-European STOXX 600 was down 0.6 per cent by 0720 GMT, extending losses from Friday that marked its worst monthly performance this year. Germany’s DAX, which is particularly exposed to trade risks, was down 0.7 per cent to a two-month low.
Stock markets globally took a hammering in May, with the STOXX sinking more than six per cent as a series of new developments in President Donald Trump’s trade war with China and others convinced some investors a slide into recession was possible over the next year.
Data today showed factory activity across most Asian countries contracted last month, indicating tariff wars were taking a toll. Results of the latest surveys on European and US manufacturing are due later in the day.
In M&A news, Germany’s Infineon agreed to buy US peer Cypress Semiconductors in a deal valuing the company at €9 billion (RM42 billion), including debt. Infineon’s shares fell five per cent, putting it at the bottom of the STOXX 600.
The tech sector, also heavily exposed to the trade issue, was down 1.1 per cent, with other chipmakers STMicroelectronics and ASM International falling more than one per cent each. — Reuters
