(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
* WTO approves $7.5 bln U.S. tariffs on EU goods
* STOXX 600 gives up most of its Sept gains
* FTSE 100 leads declines across major regions
* Europe Q3 earnings could be worst in 3 years
(Adds details on WTO tariff decision, UK Brexit proposal;
updates prices to close)
By Susan Mathew
Oct 2 (Reuters) - European stock markets dived almost 3% to
log their worst day since last December on Wednesday as the
threat of a transatlantic trade war and dismal economic data
added to fears about a faltering global economy.
Losses in London were the most dramatic, with the FTSE 100
.FTSE seeing its worst session in 3-1/2 years after Prime
Minister Boris Johnson unveiled a final Brexit proposal that
dimmed the chances of Britain leaving the European Union with a
deal. .L
In Europe, Airbus AIR.PA dropped 2% and the benchmark
STOXX 600 index .STOXX gave up almost all of the past month's
gains after the World Trade Organization approved U.S. moves to
slap import tariffs on $7.5 billion worth of European goods.
Global equity markets are already reeling from a prolonged
tit-for-tat battle between Washington and Beijing over trade,
which has showed up this week in sharp falls in manufacturing
sector indicators on both sides of the Atlantic.
"We haven't seen the worst of the trade war impact yet and
of course it's a big impact on (manufacturing in) Europe because
it relies so much more on exports than U.S.," said Andrea
Cicione, head of strategy at TS Lombard.
The losses drove the pan-European index below its 100-day
moving average, seen as a strong technical support level that
could spur further losses.
All of Europe's major markets tumbled more than 2%, with
Italian shares .FTMIB losing 2.9% in their worst session since
December, while French stocks .FCHI gave up a full 3%.
Frankfurt shares .GDAXI fell 2.8% to their lowest level in
a month and have now fallen more than 4% in just two days.
Latest Refinitiv data showed European companies could be set
for their worst quarterly earnings period in three years as
revenue drops for the first time since early 2018. "It's going to be a tough season and the most important
thing will be how the companies view going into Q4 and the early
outlook for 2020, which is shaping up to be a tough year for
markets and corporates," said Neil Campling, analyst at Mirabaud
Securities.
All eyes are now on the release of service sector data from
the euro zone on Thursday. GVD/EUR
Among the worst performers was French waste and water group
Suez SEVI.PA which dropped 7% after its new chief executive
unveiled a four-year plan to boost earnings but failed to
provide clarity on dividends and planned asset sales.
Flutter Entertainment FLTRE.I was one of the few gainers
on the tumultuous day, up 7% after the company agreed to merge
in an all-share deal with Stars Group Inc (TSG) TSGI.TO , owner
of Poker Stars. Among sectors, oil stocks .SXEP were the biggest drag on
the pan-regional index as prices of Brent crude sank 2.5%. O/R
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STOXX 600 records biggest percentage decline since Dec 2018
https://tmsnrt.rs/2nI9VAm
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