European Shares Slip On Recession Fears

(RTTNews) - European stocks were subdued on Friday, as U.S.-China tensions simmered and investors awaited key labor market data from the United States later in the day for clues about the Federal Reserve's tightening path.

Days after U.S. House of Representative Speaker Nancy Pelosi visited Taiwan, the Chinese government has decided to impose sanctions on her and her family.

China said it fired missiles over Taiwan for the first time, escalating tensions in the region.

Investors were also reacting to the Bank of England's largest interest-rate hike in last 27 years and its warning that a long recession on its way.

The pan-European Stoxx 600 slipped 0.2 percent to 437.99 after closing 0.2 percent higher on Thursday.

The German DAX eased 0.2 percent even as data showed industrial output rose sequentially in June despite supply-china problems and higher energy prices.

Output in Europe's manufacturing powerhouse rose 0.4 percent in June from the previous month in calendar-adjusted terms, Destatis said.

France's CAC 40 index dropped half a percent and the U.K.'s FTSE 100 was down 0.1 percent.

Credit Suisse declined 1 percent after reports that executives at the Swiss bank are discussing reducing thousands of roles globally.

Pirelli & C. SpA surged 4.3 percent after the Italian tire manufacturer reported higher profit in its second quarter driven by strong revenue growth. The company also lifted its fiscal 2022 forecast for revenues.

German logistics company Deutsche Post jumped nearly 6 percent after second-quarter earnings beat expectations.

Insurer Allianz gave up 2.3 percent after reporting a 23 percent fall in Q2 net profit.

Automotive and arms manufacturer Rheinmetall plunged 6.2 percent despite the company posting higher profit and sales for the first half of the year.

Miners Anglo American, Antofagasta and Glencore were seeing modest gains in London as copper and other base metals rose on a weaker dollar.

Oil & gas firm BP Plc fell nearly 2 percent and Shell dropped 1.2 percent as oil headed toward a 10 percent weekly loss on recession worries.

Capita plunged 6.3 percent. The business process outsourcing and professional services provider said that its first-half profit before tax plunged to 0.1 million pounds from last year's 261.1 million pounds, reflecting business exits and portfolio goodwill impairment.

London Stock Exchange Group rallied 3 percent on share buyback news.

Advertising agency WPP plummeted 7 percent despite raising its sales outlook.