Auto stocks hit European shares after Renault sales warning; weak China data stirs fear

(Reuters) – European shares fell on Friday, dragged down by auto stocks after Renault’s sales warning while a sharp contraction in China’s economy exacerbated worries about slowing global growth.

The pan-European STOXX 600 () slipped 0.2% at 0705 GMT, as a volatile week where trading was dominated by Brexit headlines, was set to end fairly unchanged.

Shares of automobiles and parts markers () shed 2% after France’s Renault (PA:) cut its full-year revenue and profit forecast amid a broad-based slump in auto sales.

Renault shares slumped 10%, set for their worst day in more than three years and pulled Paris-listed stocks () down 0.6%.

Adding to auto stocks’ pain was Sweden’s truckmaker AB Volvo (ST:) forecasting slumping market demand on both sides of the North Atlantic next year.

Uncertainty over whether British Prime Minister Boris Johnson would be able to win approval of the parliament for a new Brexit deal on Saturday also weighed on sentiment.

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