(For a live blog on European stocks, type LIVE/ in an Eikon news window)
* Trump says China trade deal may come after 2020 U.S. election
* Miners, energy stocks lead losses
* German shares lifted by SAP, MTU Aero Engines
* French luxury stocks dented by new tariff threats (Updates to close, adds comment after Trump signals delay in China deal)
By Susan Mathew
Dec 3 (Reuters) - European shares wiped gains and ended lower for a fourth session running on Tuesday as sentiment worldwide took a hit after U.S. President Donald Trump signalled delays to reaching a trade deal with China.
London's FTSE .FTSE , packed with trade-sensitive mining and energy stocks, lost 1.8%%, the most in the region, as material shares .SXPP lost 1.6%. Weaker crude prices saw oil shares .SXEP post their biggest one-day drop in a month. O/R
Trump said he had no deadline to strike an agreement with China, adding it could come after 2020 U.S. elections, denting hopes of a near-term resolution to a dispute that has weighed on the world economy. came amid fears of expanding trade disputes. GVD/EUR
Washington on Monday warned of punitive duties of up to 100% on $2.4 billion in imports from France, saying its new digital services tax would harm U.S. tech companies. France and the European Union (EU) said they were ready to fight back. the World Trade Organization's rejection of EU claims that it did not provide subsidies to Airbus AIR.PA prompted the United States to say it could raise retaliatory tariffs on a wider range of European goods.
Airbus shares fell 4.4%.
Reversing session gains, the pan-European stocks index .STOXX closed down 0.6%, after logging its worst selloff since Oct 2. on Monday. current sell-off ... is yet another reminder of market's exceptionally high sensitivity to trade headlines, and underscores fragility of the latest risk rally," said Marija Veitmane, a senior strategist at State Street (NYSE: STT ) Global Markets.
European shares had rallied over the last three months on hopes of a U.S.-China trade deal, and some calm on the Brexit front.
German shares .GDAXI , meanwhile, ended up 0.2% thanks to rallies in software firm SAP SAPG.DE and MTU Aero Engines MTXGn.DE which rose after a BoFA Merrill Lynch upgrade to "buy". blue-chip index .FTMIB finished marginally higher, supported by gains in Ferrari (NYSE: RACE ) RACE.MI after a Goldman Sachs (NYSE: GS ) target price hike and utility Enel ENEI.MI after it made a bid for Renvico wind farm portfolio in Italy and France. other bright spots, telecom companies Ericsson (BS: ERICAs ) ERICb.ST and Nokia NOKIA.HE rose on a media report that said Washington is considering financial aid to countries that would source telecoms equipment from firms other than China's Huawei.
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