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May 22 (Reuters) - European shares fell on Friday as a
deterioration in U.S.-China ties compounded fears of a slower
recovery from the economic damage wreaked by the COVID-19
pandemic.
Beijing on Thursday planned to impose a new security law in
Hong Kong, drawing a warning from U.S. President Donald Trump
that Washington would react "very strongly". The pan-European STOXX 600 .STOXX was down 1.6% by 0716
GMT, with Asia-exposed stocks such as HSBC Holdings Plc HSBA.L
tumbling 5.5% and Prudential Plc PRU.L falling 8.4%.
UK's FTSE 100 .FTSE lagged its European peers with a 2%
drop.
Luxury goods makers including LVMH LVMH.PA and Kering SA
PRTP.PA , who draw a major part of their revenue from China,
fell more than 2%.
Shares in France's Renault SA RENA.PA slid 4.3% after
Finance Minister Bruno Le Maire said he had not signed off on a
5 billion euros ($5.47 billion) state-guaranteed loan to help
the company cope with the pandemic fallout.