UPDATE 2-European shares slide after strong November; trade jitters nag

(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
* STOXX 600 posts worst day in two months, Germany, France
down 2%
* Trump restores steel, aluminum tariffs on Brazil,
Argentina
* PMIs from China, Europe come in better-than-expected

(Adds comment, details on metal tariffs; updates prices)
By Susan Mathew
Dec 2 (Reuters) - European shares posted their biggest daily
drop in two months on Monday, with most major markets including
Germany and France slumping more than 2%, as a reimposition of
U.S. metal tariffs on Brazil and Argentina triggered a decline
in global sentiment.
After an upbeat November, its third straight month of gains,
the pan-European STOXX 600 index .STOXX closed down 1.6%,
erasing session gains after positive factory activity data from
China and major euro zone economies had earlier taken it to near
four-year peaks.
"It's a function of markets having done reasonably well in
November post-settling-down of nerves around Brexit and also
U.S.-China trade, coupled with first trading day of the month,"
said Will James, senior investment director, European equities,
at Aberdeen Standard Investments.
Sentiment worldwide took a hit after U.S. President Donald
Trump said on Monday he would immediately restore tariffs on
U.S. steel and aluminum imports from Brazil and Argentina,
accusing them of devaluing their currencies to the detriment of
U.S. farmers. MKTS/GLOB
The STOXX 600 index has gained over the past few months and
approached record highs on expectations that Beijing and
Washington will hammer out a "phase one" trade deal this year.
"If Trump starts hitting these other countries with tariffs,
it looks like it'll only be a matter of time before he starts
bringing up the European tariffs again," said Michael Baker, an
analyst at ETX Capital.
Losses were broad-based with a 2.7% fall in utility stocks
.SX6P leading declines, with Latin America-exposed Italian
utility Enel ENEI.MI sliding 3.7%.
Steel and aluminum producers such as Norsk Hydro NHY.OL
and ArcelorMittal MT.AS weighed on the materials sector, but
it lost the least among major sectors as mining giants BHP
BHPB.L and Rio Tinto RIO.L gained on higher iron ore and
copper prices. MET/L IRONORE/
Rising oil prices limited slippage in the energy sector
.SXEP to 0.8%, while other sectors gave up more than 1%. O/R
At the bottom of STOXX 600 was British online grocer and
technology company Ocado OCDO.L , which dropped 7.4% after
launching a 500 million pound ($642 million) bond issue, in part
to fund construction of robotic warehouses.