CORRECTED-UPDATE 2-European shares hit by U.S. tariff threat, growth jitters (April 9)

Reuters

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 (Corrects paragraph 17 in April 9 story to "jumped as much as 7
percent" from "jumped about 40.2 percent")
    * STOXX 600 slides from eight-month high hit earlier on
Tuesday
    * Airbus and its suppliers fall on threat of U.S. tariffs
    * Tech stocks slide, SAP hit by HSBC, UBS rating downgrades

    By Aaron Saldanha
    April 9 (Reuters) - European shares slid on Tuesday, with
most sectors falling after the United States threatened to slap
tariffs on goods from the European Union, with worries
compounded by the IMF cutting its global growth forecast.
    The U.S. Trade Representative proposed a list of European
Union products late on Monday on which to slap tariffs in
retaliation to more than $11 billion of EU subsidies to Airbus
the World Trade Organization has found cause "adverse effects"
to the United States.  urn:newsml:reuters.com:*:nL1N21Q1PD urn:newsml:reuters.com:*:nL8N21R41C
    Piling on the uncertainty, the IMF on Tuesday cut its global
economic growth forecasts for 2019, citing a potentially
disorderly British exit from the European Union as a key risk.
 urn:newsml:reuters.com:*:nL1N21R0L5
    "It's been long accepted that while Europe hasn't been
strongly targeted yet, it was going to be the case once China
wrapped up, and Europe would be next," said Craig Erlam, senior
market analyst at OANDA in London.
    The pan-region STOXX 600 index  .STOXX  fell 0.3 percent,
slipping away from an about eight month-peak seen earlier in the
day. Germany's trade-sensitive DAX  .GDAXI  dropped 0.9 percent.
   
    Airbus  AIR.PA  slid 1.6 percent after the United States
included large commercial aircraft and parts on its proposed
tariff list of EU products. The European planemaker said it saw
no legal basis for the move.  urn:newsml:reuters.com:*:nL8N21R1ZU
    "It's only natural that Airbus will be among those targets,
because its such an important firm for Europe," said Oanda's
Erlam, adding,"I think the timing of it probably is not too
coincidental, given the fact there has been so much tension on
Boeing."
    Airbus's stock has broadly benefited from issues plaguing
rival Boeing Co's  BA.N  after an Ethiopian Airlines Boeing 737
MAX plane crash spurred a production cut by the U.S. company.
 urn:newsml:reuters.com:*:nL3N21R28W  urn:newsml:reuters.com:*:nL3N21Q3J1
    Suppliers to Airbus such as Safran SA  SAF.PA , Leonardo
 LDOF.MI  and Rolls-Royce Holdings  RR.L  shed between 1.3
percent and 2.1 percent on the day.
    Safran's stock has been hit in recent weeks, as the French
firm has been swept up in the turmoil around Boeing Co, to whom
a Safran-General Electric Co  GE.N  joint venture supplies
engines. 
    Premier Li Keqiang of China, the United States' long-time 
trade enemy, promised his European Union hosts Beijing will no
longer force foreign firms to share sensitive know-how when
operating in China and was ready to address industrial
subsidies.  urn:newsml:reuters.com:*:nL8N21R21O
    European technology stocks  .SX8P  had a particularly
bruising day, falling 1.5 percent in their worst session in two
and a half weeks.
    SAP  SAPG.DE  led losses on the sector index with a 3.4 
percent slide after it was downgraded by UBS and HSBC. The stock
fell for a fourth straight day.  urn:newsml:reuters.com:*:nL3N21R1ZI
    Oil and gas stocks  .SXEP  slipped 0.8 percent, after
hitting a near six-month peak earlier on Tuesday. Global oil
benchmark Brent  LCOc1  fell on Russian comments signalling the
possible easing of a supply-cutting deal with OPEC.  O/R  
    Bank stocks  .SX7P  edged up 0.1 percent, rising for the
first time in three sessions to help restrain the broad
benchmark from incurring a steeper loss. 
    The European Central Bank is expected to hold borrowing
costs on Wednesday, the same day British Prime Minister Theresa
May's request to delay Brexit until June 30 will be formally
discussed by EU leaders at a special summit.  urn:newsml:reuters.com:*:nL8N21Q5N6
    Swiss drugmaker Novartis  NOVN.S  ended 2 percent lower
after completing the spin off of its eyecare unit Alcon
 ALCC.S , whose stock jumped as much as 7 percent.  urn:newsml:reuters.com:*:nFWN21Q0UV
    Merck KGaA  MRCG.DE  slid 2.6 percent after winning the
backing of Versum's  VSM.N  board for a sweetened $6.5 billion
takeover bid, overturning Versum's agreed merger with Entegris
 ENTG.O .  urn:newsml:reuters.com:*:nL3N21Q2LX
    Helsinki-listed DNA  DNAO.HE  surged 8.6 percent after
Norway's Telenor  TEL.OL  agreed to buy a 54 percent stake in
the Finnish telecoms firm for 1.5 billion euros ($1.69 billion).
Telenor shares ended 0.8 percent lower.  urn:newsml:reuters.com:*:nL8N21R124

 (Reporting by Aaron Saldanha, Additional reporting by Medha
Singh and Susan Mathew in Bengaluru;
Editing by Alison Williams)
 ((Aaron.Saldanha@thomsonreuters.com; +91 80 6749 1130; Reuters
Messaging: Aaron.Saldanha@thomsonreuters.com@reuters.net))

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