European stocks slide as US-China trade tensions simmer

London: European stock markets sank Wednesday after US President Donald Trump reportedly raised the stakes in a global trade war with China, dealers said.

London stocks dived one percent in late morning deals, hit also by weak manufacturing data on the eve of a likely UK interest rate hike, while Frankfurt fell 0.4 percent and Paris dipped 0.1 percent.

In a mixed Asia session, Shanghai and Hong Kong both lost ground, despite bright Apple earnings and overnight Wall Street gains.

"European stock markets are largely lower as fears about global trade have crept back into traders' psyches," said CMC Markets UK analyst David Madden.