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Europe Drops, Autos Underperform After BMW Provision Warning

Europe Drops, Autos Underperform After BMW Provision Warning

(Bloomberg) -- European shares fell slightly after mixed trading in Asia. U.K. Prime Minister Theresa May is seeking to negotiate a compromise over Brexit, while BMW AG drew focus toward automakers after it warned about an antitrust-related charge.

The Stoxx Europe 600 Index fell 0.1 percent. Germany’s BMW declined after it said it’s likely to take a charge exceeding 1 billion euros ($1.1 billion). Oil extended gains after fighting in Libya added to supply concerns, putting focus on stocks including Royal Dutch Shell Plc.

Equities continued to grind higher last week as the macro data increasingly suggested that a recession isn’t waiting around the corner, said Lippo Suominen, chief strategist at Finnish asset manager FIM.

“Data from most parts of the world showed signs of economic growth stabilizing or slightly improving,” Suominen said. “As inflation at the same time remains low, investors are back in a ‘goldilocks’ world where the economy is decent and central banks won’t spoil the party by tightening policies.”

Europe Drops, Autos Underperform After BMW Provision Warning

To contact the reporter on this story: Hanna Hoikkala in Stockholm at hhoikkala@bloomberg.net

To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net, Jon Menon

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