Europe close: Stocks slip as euro strength and geopolitics drag

(Sharecast News) - European shares ended the session modestly lower as the single currency broke out to new year-to-date highs versus the Greenback.

Possibly weighing on the US dollar were mixed remarks around trade negotiations coming out of the US.

Overnight, president Donald Trump threatened trade partners with sending letters in about a week and a half detailing what the "deal" would be and that they could either accept or refuse it.

News headlines regarding increased tensions in the Middle East and speculation regarding a possible Israeli strike on Iranian nuclear installations also dragged on sentiment.

The pan-regional Stoxx 600 index was down 0.33% at 549.84 points with Germany's DAX falling 0.74%, although Britain's FTSE 100 edged up by 0.23% to 8,884.92.

Travel and Leisure names on the Stoxx 600 gave up 2.38%. Shares of TUI, Lufthansa, IAG, Accor, easyJet and Carnival were all lower.

Euro/dollar was 0.78% higher at 1.1578, having earlier hit an intraday high of 1.1631. Gold futures climbed 2% to around $3,400/oz. on COMEX.

Worth noting, Donald Trump had set a 8 July deadline for reaching trade deals, although he did also say on Wednesday that he was willing to extend the deadline if necessary.

Official figures showed the British economy contracted by 0.3% month-on-month in April, as exports declined by the most on record.

Exports to the US fell �2bn in April - the biggest monthly drop since records began in 1997, with the decline "likely linked to the implementation of tariffs on goods imported to the United States", the Office for National Statistics said.