European shares fall as BASF profit warning hits German stocks

  • Reuters
  • Stock Market News
European shares fall as BASF profit warning hits German stocks
Credit: © Reuters.

July 9 (Reuters) - European shares opened lower on Tuesday in what could be their third straight day of losses as German shares fell sharply due to a profit warning from chemicals giant BASF.

Amid dimming hopes of a sharp cut in U.S. interest rates this month that has been weighing on riskier assets since late last week, the pan-European STOXX 600 index .STOXX fell 0.4% by 0714 GMT, in line with Asian peers and Wall Street overnight. MKTS/GLOB

German shares .GDAXI tumbled 0.8%.

In the latest evidence of the U.S.-China trade war squeezing businesses, German chemicals firm BASF BASFn.DE slumped 5.3% on warning that profit would fall below forecasts for the second quarter and the full year. hit fellow chemicals company Bayer BAYGn.DE , which fell 1%, taking Europe's chemicals index .SX4P down 1.7%.

Nordic lender Danske Bank DANSKE.CO , which has been struggling to restore trust among investors after disclosing a major money laundering scandal at one of its branches, cut its 2019 earnings forecast for the second time, sending its shares 2.5% lower.

Deutsche Bank DBKGn.DE fell 1.6%, adding to Monday's 5.4% slide as it began to slash 18,000 jobs in a 7.4 billion euro ($8.3 billion) "reinvention" that will lead to yet another annual loss.

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