European shares extend losses on weak German data, trade anxiety

European shares dipped on Monday, extending losses from their sharpest weekly slide this year, as weak data on German industrial orders underscored concerns of a looming recession in the country while investors were on edge ahead of crucial trade talks between the U.S. and China this week.

By 0710 GMT, the pan-European STOXX 600 index was down 0.1%, after it tumbled 4% last week on tensions over transatlantic trade wars and a clutch of weak U.S. and European data. Germany's DAX declined 0.2% after data showed German industrial orders fell slightly more than expected in August.

A report that said China officials are increasingly reluctant to agree to a broad trade deal with the United States, kept investors nervous ahead of the trade negotiations starting on Thursday. Trade-sensitive automakers dropped 1%, leading declines among major sectors.

London-listed shares of HSBC Holdings Plc fell 0.7% after a report over the weekend said the banking group was planning to cut up to 10,000 jobs to lower costs. Austria's AMS rose 3.5% after the company said it failed in its 4.5 billion euro ($4.9 billion) takeover attempt of German lighting group Osram. Osram was the biggest decliner on the STOXX 600, down 4%.

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