UPDATE 2-European shares dip, banks and Boeing suppliers in focus

  • Reuters
  • Stock Market News
UPDATE 2-European shares dip, banks and Boeing suppliers in focus
Credit: © Reuters.

* Boeing (NYSE: BA ) suppliers scrutinised after Friday's 737 output cut

* Calls for expropriating Berlin flats hit real estate stocks

* Irish stocks slide away from Friday's near 6-month peak

* Auto and parts makers slip after solid showing last week (Updates to close)

By Aaron Saldanha

April 8 (Reuters) - Most European stocks slid on Monday amid losses across most sectors, with German bank and real estate shares drawing investor attention as did European suppliers of U.S. planemaker Boeing following a production cut announced late on Friday.

The pan-region STOXX 600 index .STOXX fell 0.2 percent, further distancing itself from a near eight-month peak hit last week.

"In light of the strong rally and the multi-month highs that were achieved in European indices recently, some investors are now taking a breather," David Madden, a market analyst at CMC Markets UK, wrote in a note.

Bank stocks .SX7P dropped 0.4 percent, with German lender Commerzbank CBKG.DE among the top losers on the sector index with a 2.4 percent fall. Deutsche Bank DBKGn.DE , with whom Commerzbank is exploring a merger, dropped 1.9 percent.

European bank supervisors demanded a detailed roadmap outlining the pace and scale of staff cuts in the two banks as they explore a merger, according to a report by German daily Handelsblatt. Safran SA SAF.PA slid 2 percent as Boeing Co BA.N revealed a plan to cut 737 aircraft production by nearly a fifth. joint venture with General Electric (NYSE: GE ) Co GE.N provides Boeing with engines for the 737. Industries MRON.L , another supplier to Boeing, slid 2 percent, while Meggitt MGGT.L recouped early losses to end 0.2 percent higher. French rival Airbus AIR.PA rose 1.7 percent.

Real estate stocks .SX86P fell 1.3 percent with Deutsche Wohnen DWNG.DE dropping 3.1 percent following protests over the weekend demanding expropriation of apartments in Berlin that have been sold off to big private landlords.

The protests prompted a spokesman for the German government to say Chancellor Angela Merkel does not think "expropriating apartments is the right answer". DAX index .GDAXI fell 0.4 percent, snapping a seven-day winning streak. Data showed German exports and imports fell more than expected in February, the latest sign that Europe's biggest economy will probably post meagre growth in the first quarter. firm SAP SAPG.DE dropped as much as 2.2 percent after it said the head of its cloud business group had quit, but regained some ground to close 0.6 percent lower. AG CONG.DE slipped 1.1 percent after Kepler Cheuvreux downgraded the auto parts maker to "hold" from "buy".

Auto stocks .SXAP gave up a fraction of the ground they gained during a 6.9 percent jump over the course of last week as they edged lower.

Daimler DAIGn.DE ended little changed. The German auto giant had been weighed down by the prospect of potentially hefty fines after EU antitrust regulators charged the firm along with Volkswagen (DE: VOWG_p ) VOWG.DE and BMW BMWG.DE with colluding to block the rollout of clean emissions technology. Chrysler Automobiles NV (FCA) FCHA.MI gained 1.9 percent after agreeing to pay electric carmaker Tesla Inc TSLA.O hundreds of millions of euros to allow Tesla vehicles to be counted in its fleet to avoid fines for violating new EU emission rules. stocks .ISEQ , which are especially sensitive to the fallout of a potential hard Brexit, shed 1.4 percent as they fell from a near six-month closing high clocked on Friday.

Britain's government has been in contact with the main opposition Labour Party and hopes there will be more talks later on Monday to find a compromise over a Brexit deal, a spokeswoman for Prime Minister Theresa May said. and gas stocks .SXEP were a rare spot of optimism on the day, their 0.9 percent rise was supported by oil prices LCOc1 hitting a five-month peak. O/R

( Reporting by Aaron Saldanha with additional reporting by Susan Mathew and Medha Singh in Bengaluru Editing by Mark Heinrich)

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