UKX FTSE 100 Index

By Barbara Kollmeyer, MarketWatch , Anneken Tappe

European stocks ended Thursday trading modestly higher after struggling during the session, as investors attempted to dispel trade-war angst between the U.S. and China and as shares of financials and the pharmaceutical companies weighed on the broader market.

What are markets doing?

The Stoxx Europe 600 erased losses and eked out a 0.1% gain to 390.05, after finishing 0.2% lower on Wednesday at 389.69. The day's moves come after Tuesday marked the index's best close since late July (http://www.marketwatch.com/story/european-stocks-rally-led-by-auto-and-materials-shares-2018-08-07). The pan-European gauge is on pace for a rise of about 0.2% so far this week, having pushed into positive territory for the year this week.

Germany's DAX 30 rose 0.3% to 12,676.11, while France's CAC 40 ended the day little changed in positive territory at 5,502.25. The U.K.'s FTSE 100 , slid 0.5% to 7,741.77, while the British pound slumped further to $1.2839.

Meanwhile, the FTSE MIB Italy index declined by 0.7% to 21,634.25, while Spain's IBEX 35 inched 0.08% higher to 9,754.60.

The euro edged down 0.5% to $1.1553, compared with $1.1610 late Wednesday in New York.

A weaker currency can help lift sales and revenue for companies doing business outside of Europe.

What is driving the market?

A risk-off environment was pervading Europe bourses. In the latest ripple for global trade tensions, China responded Wednesday to the U.S.'s plan to impose new 25% tariffs on Chinese goods, to take effect Aug. 23. China said it would match that move, with similar tariffs to take effect the same day.

Read: Trade-war tracker: Here are the new levies, imposed and threatened (http://www.marketwatch.com/story/trade-war-tracker-here-are-the-new-levies-imposed-and-threatened-2018-06-22)

Other stock movers

Adidas AG(ADS.XE) shares jumped after the sportswear maker reported higher profit (http://www.marketwatch.com/story/adidas-profit-up-confirms-outlook-2018-08-09) in the second quarter, lifted by strong revenue for key U.S. and China markets. The company also confirmed its outlook. Shares of the company were up more than 9%, one of the best performing stocks of the day.

Thyssenkrupp AG(TKA.XE) shares dropped 1.7% after the steelmaker said it swung to a loss in the third quarter (http://www.marketwatch.com/story/thyssenkrupp-swings-to-a-loss-sets-new-targets-2018-08-09), and set fresh midterm earnings and sales targets. "The bottom line is, that we are not satisfied with the current results," said the German industrial conglomerate's interim Chief Executive Guido Kerkhoff. Thyssenkrupp was the worst performer in the German stock index.

Deutsche Telekom(DTEGY) lifted its full-year guidance as the German telecommunications group saw second-quarter net profit nearly halved (http://www.marketwatch.com/story/deutsche-telekom-lifts-guidance-as-profit-falls-2018-08-09) from the year-earlier period due to an expense. Shares of the company closed slightly lower, down less than 0.1%.

(END) Dow Jones Newswires

August 09, 2018 13:28 ET (17:28 GMT)

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