UPDATE 2-European shares fall on trade tensions, Deutsche troubles
* STOXX 600 down 0.6 pct; DAX down 1.4 pct
* Deutsche Bank ends at record closing low
* Auto, steel stocks drop on trade war concerns (Adds details, closing prices)
By Danilo Masoni and Julien Ponthus
LONDON, May 31 (Reuters) - European shares fell on Thursday as trade war concerns weighed and Deutsche Bank tumbled to a record low after a report the U.S. Fed last year deemed its U.S. operations as troubled.
Germany's DAX .DAX was the worst performer among the main country indexes, down 1.4 percent, while efforts in Italy to avert a new snap election helped Italy's FTSE MIB .FTMIB limit losses to 0.1 percent after a volatile session.
The pan-European STOXX 600 index fell 0.6 percent, weighed down later in the session after the U.S. said it will impose tariffs on aluminum and steel imports including from the European Union, ending months of uncertainty about potential exemptions and reigniting fears of a global trade war. in steel pipe maker Tenaris TENR.MI fell 3.2 percent, while steelmakers Thyssenkrupp TKAG.DE and Salzgitter SZGG.DE fell more than 1 percent.
Deutsche Bank DBKGn.DE however was the biggest STOXX loser, down 7.1 percent at 9.157 euros, its lowest closing level on record.
The Wall Street Journal reported that the Fed last year designated its U.S. operations to be in "troubled condition", one of the lowest designations employed by the central bank.
"The news clearly indicates the pressure Deutsche bank is under from US regulators and the need to quickly restructure operations," Thomas Hallett, banking analyst at KBW said.
"The bank has failed to sufficiently restructure the business to operate in a low interest rate and regulatory constrained environment," he added.
Deutsche declined to comment but said it was working to remedy weaknesses in its U.S. business identified by regulators. on Thursday, German magazine Wirtschaftswoche reported that U.S. President Donald Trump wanted to block German luxury cars from the U.S. market.
Shares of BMW BMWG.DE , Daimler DAIGn.DE and Volkswagen VOWG_p.DE fell between 0.9 and 2 percent. CRH (LON: CRH ) CRH.I rose 3.7 percent after the Irish building materials group announced it would streamline some European and American businesses by combining them, in a move to improve profit margins. that Italy's Enel ENEI.MI outbid Spain's Iberdrola IBE.MC with a 2 billion dollar bid for Brazilian grid operator Eletropaulo ELPL3.SA did not support the utilities' share price. Enel fell 1 percent and Iberdrola was down 1.6 percent.
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