European shares retreat as U.S. law on Hong Kong sparks trade jitters

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European shares retreat as U.S. law on Hong Kong sparks trade jitters
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European shares pulled back from near-record highs on Thursday, as U.S. Presiden...

- European shares pulled back from near-record highs on Thursday, as U.S. President Donald Trump signed into law a bill backing protesters in Hong Kong, sparking doubts about a resolution to the prolonged tariff war between Washington and Beijing.

The law, which warns of sanctions against human rights violations in Hong Kong amid pro-democracy protests, drew a sharp rebuke from China for what it views as U.S. interference in an internal matter. Shares of trade-sensitive auto parts makers .SXAP shed 0.8% in their sharpest one-day drop in more than a week. The tech sector .SX8P, which includes chipmakers with a large exposure to China, was down 0.6%.

“But the interests for both China and the U.S. to not escalate the situation and pause this conflict are still very much alive.”

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