UPDATE 2-European shares slide as U.S.-China trade war intensifies
(There will be no FTSE 100 report on 26 Aug, Monday on account of a bank holiday in the United Kingdom. Reuters will resume coverage for London stocks from Tuesday 27 Aug)
* China unveils retaliatory tariffs on U.S. goods
* Trump tells U.S. companies to seek alternatives to China ops
* Powell says will "act as appropriate" to support growth
* Peppa Pig-owner Entertainment One surges on Hasbro (NASDAQ: HAS ) deal
* Kloeckner jumps on report of talks with Thyssenkrupp (Recasts, adds new comments, updates to close)
By Agamoni Ghosh
Aug 23 (Reuters) - European shares fell on Friday after U.S. President Donald Trump furiously reacted to China's latest imposition of tariffs on certain U.S. goods, while a lack of direction in the U.S. central bank's rate outlook somewhat frustrated investors.
In a surprise move Beijing imposed additional tariffs on thousands of U.S. products effective Sept. 1, infuriating Trump who hit back asking U.S. companies to start looking for alternatives to their China operations. great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing ... your companies HOME and making your products in the USA," Trump said as part of a series of tweets. reacted sharply to those developments, with Wall Street indexes shedding over 1% and the pan-European STOXX 600 .STOXX ending 0.7% lower after a volatile session. Germany's trade-sensitive DAX .GDAXI fell 1.2%.
Trade-sensitive autos .SXAP , mining .SXPP and tech stocks .SX8P were the biggest losers across Europe, while defensive real estate stocks .SX86P were the only ones in positive territory.
The benchmark index still managed to record its first weekly gain in four weeks.
European equities have seen wild swings in August amid fears that the economic effects of the U.S.-China trade war could tip major economies into recession.
"The trade war will only get uglier and cause both sides more economic pain before we see a final resolution," said Edward Moya, senior market analyst at OANDA.
"Trump is going to try to gather as many chips as he can to try and punish China before settling on a deal that appeases a majority ahead of the 2020 U.S. Presidential elections."
U.S. Federal Reserve Chairman Jerome Powell's latest comments also came under Trump's attack as the President asked whether his appointee to the central bank was a greater "enemy" than China's leader Xi Jinping to the country.
Powell, in a much anticipated speech at an economic symposium at Jackson Hole said the U.S. central bank would "act as appropriate" to keep the current economic expansion on track, but did not offer a clear indication on future interest rate-cuts. statement wasn't as clear as we hoped it would be, but it was enough to show that he was at least leaning towards a rate cut in September," said Philip Marey, senior U.S. strategist at Rabobank.
London's FTSE 100 .FTSE had its fourth straight week of losses, the longest streak since February. Oil majors Shell RDSa.L and BP BP.L had the biggest negative impact on the day. .L
Among individual stocks, Kloeckner & Co KCOGn.DE shares jumped 7% after a newspaper said Thyssenkrupp TKAG.DE was in talks to buy the metals distributor. Pig owner Entertainment One ETO.L hit a life high after agreeing to be acquired by Hasbro.
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