UPDATE 2-European stocks edge down on Brexit, trade war fears

  • Reuters
  • Stock Market News
UPDATE 2-European stocks edge down on Brexit, trade war fears
Credit: © Reuters.

* STOXX 600 ends marginally lower

* Banks, Brexit-sensitive stocks lead losses

* German, British shares post gains

* Marks & Spencer tumbles after decline in profit (Updates to closing)

May 22 (Reuters) - European shares edged lower on Wednesday on unease over developments in the U.S.-China trade war and Britain's uncertain departure from the European Union.

The pan-European STOXX 600 index .STOXX closed down 0.08% with losses on Italy's MIB .FTMIB and France's CAC .FCHI offset by gains in Britain's FTSE 100 .FTSE and Germany's DAX .GDAXI .

Banks and Brexit-sensitive stocks led losses as some investors switched into safe-haven euro zone bonds as pressure grew on UK Prime Minister Theresa May to resign after lawmakers in her own party rejected her compromise deal on exiting the EU. Report that the United States is considering curbs on Chinese video surveillance firm Hikvision 002415.SZ added to investor concerns. remains fragile as investors digest the changing face of the trade dispute from broad sweeping tariffs to direct action against single Chinese companies," Jasper Lawler, head of research at futures brokerage London Capital Group, wrote in a note.

Europe's banking index .SX7P fell 1.2% to an over four-month low with Banco Santander SAN.MC , Lloyds LLOY.L and Barclays BARC.L shedding between 1.1% and 2.7%.

London's FTSE 100 pared most of its early gains to close 0.07% higher as declines in Brexit-sensitive stocks such as housebuilders and retailers accelerated. The exporter-heavy index had outperformed its peers earlier in the session bolstered by a weak pound.

Homebuilders Taylor Wimpey TW.L , Berkeley Group BKGH.L and fell sharply, while retailers were led lower by Marks & Spencer MKS.L after it reported a third straight decline in full-year profit. trade-sensitive DAX .GDAXI closed 0.2% higher, recovering from a 0.7% fall earlier in the day.

Payments company Wirecard's WDIG.DE jumped 5.9% on a partnership deal in India over identity cards. the top of the STOXX 600 was online financial trading platform IG Group Holdings Plc IGG.L , after it unveiled a plan to drive growth even as it forecast a sharp fall in full-year net trading revenue and operating profit. IT software company SimCorp SIM.CO soared 11% as it affirmed guidance, dispelling market fears of an outlook cut after reporting quarterly results that beat expectations.

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