Europe midday: US-China tensions dampen sentiment

European shares were down on Tuesday as fears of an economic slowdown and rising geopolitical tensions between the US and China dampened sentiment.

The pan-European Stoxx 600 was down 0.58% in with most major continental bourses lower.

Weak manufacturing data from the US, eurozone and China stoked worries of a recession. Investors were also watching US House of Representatives Speaker Nancy Pelosi, who was expected to visit Taiwan, according to reports, and prompting an angry response from Beijing.

"These reports prompted some dark threats from China that the People's Liberation Army would not stand idly if she attempted to visit what is considered by China their sovereign territory without permission. These tensions have spilled over into today’s Asia session, as we look ahead to a lower European open," said CMC Markets analyst Michael Hewson.

In equity news, shares in energy giant BP rose as the London-listed company posted an estimate-busting rise in second-quarter profits.

Greggs shares were higher as the UK bakery chain maintained guidance after a rise in half-year sales.

Raiffeissen Bank surged after strong half-year results.

Travis Perkins shares fell more than 7% after the UK DIY retailer said its Toolstation business swung to a loss in the first half as the pandemic boost faded.

In the six months to 30 June, group revenues rose 10.3% to £2.5bn, while adjusted operating profit dipped to £163m from £164m in the same period a year earlier.

Shares in Finland's Nokian Tyres slumped after the company said it expected lower annual profits due to the war in Ukraine and its exit from Russia.

Reporting by Frank Prenesti at Sharecast.com