UPDATE 2-European shares retreat as Trump's China response awaited


Warning: This material has been prepared by a third party company, Reuters, which is independent of Davy. Davy has not reviewed the material and accepts no responsibility for errors or omissions, or for the information or opinions contained therein. It does not constitute investment advice.

 (For a live blog on European stocks, type LIVE/ in an Eikon
news window)
    * Automakers, travel and bank stocks lead declines
    * Coffee maker JDE Peet's surges in market debut 
    * STOXX 600 logs monthly gain of 3% 

 (Updates to market close)
    By Sruthi Shankar
    May 29 (Reuters) - European shares fell on Friday, with
investor nerves ahead of U.S. President Donald Trump's response
to China over its national security law for Hong Kong taking
some of the shine off May's stock rally.
    The pan-European STOXX 600 index  .STOXX  fell 1.4%, with
the week's outperformers -- travel & leisure  .SXTP , banks
 .SX7P  and automakers  .SXAP  -- leading the decline.
    Trump said he would hold a news conference on China later on
Friday. Investors fear a U.S. response could further damage
Sino-U.S. relations and cloud the prospect for economic recovery
from a coronavirus-led slump.  urn:newsml:reuters.com:*:nL4N2DB0H6
    China warned of countermeasures, and added that a U.S. bill
proposing to sanction Chinese officials over their treatment of
the Uighur minority severely interfered in its internal
affairs. urn:newsml:reuters.com:*:nB9N2D3028 urn:newsml:reuters.com:*:nB9N2D301T
    "Today's press conference could well up the ante if
President Trump signs off on that bill as well as implement
further measures that might hint that the U.S. is keen to send
the Chinese a message," said Michael Hewson, chief market
analyst at CMC Markets.
    Hopes of a global economic recovery, as policymakers
unleashed stimulus programmes and several countries emerged from
lockdowns, helped the STOXX 600 mark a 3% gain in May.
    Germany's auto-heavy DAX  .GDAXI  outperformed with a 6.8%
monthly rise as many investors bought beaten-down cyclical
stocks after improving economic data.  
    Coffee maker JDE Peet's BV  JDEP.AS , one of the few big
companies to go public during the coronavirus crisis, jumped
13.8% on its market debut, valuing it at 15.6 billion euros
($17.3 billion).  urn:newsml:reuters.com:*:nL8N2DB0RO
    Among decliners, Hugo Boss AG  BOSSn.DE  fell 9.1% after
Jefferies downgraded the stock to "hold", saying its performance
improvement will be derailed by two years due to the pandemic.
    Renault SA  RENA.PA  slid 7.7% on news it was launching
talks with unions to restructure several French car plants and
confirmed plans to cut around 15,000 jobs worldwide.

 (Reporting by Sruthi Shankar in Bengaluru; Editing by
Subhranshu Sahu and Shounak Dasgupta and Catherine Evans)
 ((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223
8780; outside U.S. +91 80 6182 2787;))

Warning: This content may be provided by regulated and unregulated entities and is not created, reviewed or endorsed by Davy. It is provided for general information purposes only and does not constitute a recommendation or solicitation to purchase or sell any security or make any other type of investment or investment decision. Importantly, it does not constitute investment advice, as it does not contemplate the personal circumstances of any particular person or group of persons. Neither Davy nor the providers of the Third Party Content will be liable for any investment decision made based on the reliance on or use of such data, or any liability that may arise due to delays or interruptions in the delivery of the Third Party Content for any reason.