UPDATE 2-European shares break 5-day winning run as Trump dampens trade talk hopes


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    * Trump says has not agreed to roll back tariffs on China
    * Defensive stocks gain as risk appetite falls
    * STOXX 600 on track for five weeks of gains
    * Credit Agricole drops after results
    * Spanish stocks end lower ahead of parliamentary elections 

 (Updates prices)
    By Susan Mathew
    Nov 8 (Reuters) - European shares broke a five-day winning
streak on Friday after U.S. President Donald Trump said he has
not agreed to roll back tariffs on China, adding to
uncertainties on whether the two sides were really getting close
to signing a partial deal.
    The pan-European STOXX 600 index  .STOXX  ended 0.3% lower
after gaining 2.5% over the last five sessions. Defensive plays
including healthcare  .SXDP  and utilities  .SX6P  were the only
sectors to rise, suggesting appetite for risk remained muted.
    Trump's comments worsened sentiment already hit by a similar
statement from White House trade adviser Peter Navarro as well
as sources who said the plan faced fierce internal opposition at
the White House.  urn:newsml:reuters.com:*:nL2N27O0Q7
    That ended days of optimism as officials said tariffs would
be rolled back and the deal would be signed soon, which along
with an earnings season that has proved less weak than expected,
helped STOXX 600 log its firth straight week of gains.
     "This sentiment that perhaps investors should look to fade
the optimistic advance that you saw in the earlier part of the
week has been in the markets for about a day and a half," said
Ken Odeluga, market analyst at City Index. 
    "The comment from the White House in more recent hours are
merely conformation of that. The fact that Donald Trump has
actually echoed some of these comments is a reason to adopt a
defensive position into the weekend."
    Miners  .SXPP , among the most exposed to the trade conflict
and its implications on global growth, dropped 1.6%.
    Bank stocks  .SX7P , slid 1.2%, hit by declines for some of
France's biggest lenders. Shares in Credit Agricole  CAGR.PA 
fell 2.3% as quarterly numbers in its corporate centre and
retail arms came in below analysts' expectations.  urn:newsml:reuters.com:*:nP6N27600A 
    Shares in Natixis  CNAT.PA  fell 7.3% after it trimmed its
budget for potential acquisitions to focus on reinforcing
existing businesses.  urn:newsml:reuters.com:*:nL8N27N92M
    Richemont  CFR.S  slumped 5.7% after the luxury goods group
said political protests in Hong Kong weighed on sales growth in
the six months to Sept. 30.  urn:newsml:reuters.com:*:nL8N27O0Y0
    In bright spots, Telecom Italia  TLIT.MI  rose 1.2% after
the company said it had made progress in cutting its debt
burden, while London-based insurer Beazley  BEZG.L  topped the
index as falling U.S. yields boosted investment returns, helping
it fare better in comparison to larger rival Hiscox.
 urn:newsml:reuters.com:*:nL8N27NA0X  urn:newsml:reuters.com:*:nL3N27O243
    Over the weekend, Sunday's parliamentary election in Spain,
the fourth in four years, will be closely watched. According to
a calculation by El Pais newspaper based on dozens of opinion
polls the election will do little to break a long-standing
stalemate.  urn:newsml:reuters.com:*:nL8N27O5GU 
    New parties have emerged after a financial crisis,
fragmenting the political landscape and making it much harder to
form governments with stable majorities.
    Madrid's benchmark stock index closed 0.6% lower, logging
its worst day in a week and a half. 
    Italian shares  .FTMIB  bucked the trend to end 0.1% higher,
lifted by shares of Enel  ENEI.MI  which rose after a UBS target
price hike.  The utility firm was awarded all 9,600 MW it
offered in Italy's first capacity market auction, the Italian
power group said on Friday.  urn:newsml:reuters.com:*:nS8N27200G

 (Reporting by Susan Mathew and Shreyashi Sanyal in Bengaluru;
editing by Patrick Graham and Susan Fenton)
 ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780))

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