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Investors worry about EU-US deal before tariff deadline

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BESI jumps after raising long-term financial targets

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Halma gains after beating annual profit expectations

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Airline stocks fall the most among sectors

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STOXX 600 down 0.3%

(Updates with closing levels)

By Purvi Agarwal and Pranav Kashyap

June 12 (Reuters) -

European equities logged their fourth consecutive decline on

Thursday as trade optimism dimmed, while mounting geopolitical

tensions prompted a pullback from risk assets.

The pan-European STOXX 600 closed 0.3% lower, after

touching its lowest levels in over a week during the session.

This extended selloff marks its longest daily losing streak

in over two months.

The primary catalyst was the persistent lack of clarity

surrounding global trade policy. U.S. President Donald Trump on

Wednesday announced a willingness to extend trade talk deadlines

while indicating it might not be "necessary" as "offer letters"

are imminent.

While recent

talks with China

resulted in a deal, they failed to dismantle existing

tariffs or resolve long-standing structural trade imbalances.

Treasury Secretary Scott Bessent said the European Union had

been slower in presenting robust proposals, but was now showing

"better faith".

However, markets were sceptical about an EU-US deal before

Trump's July 8 deadline, when the tariff pause expires.

Geopolitical worries fueled more market caution after

Trump said some U.S. personnel were

being moved out

of the Middle East amid rising tensions with Iran.

"If Israel were to strike Iran, the consequences ...

would depend on the severity of Iran's retaliation," said James

Swanston, senior economist at Capital Economics.

Surging oil prices provided a tailwind for the energy sector

to become the session's standout performer.

Utilities, often traded as a bond proxy, gained

0.8%, in tandem with Eurozone bond prices.

Travel and leisure dropped the most among

sectors. Boeing ( BA ) shares fell 8% after one of its jets

operated by Air India crashed in India's Ahmedabad, claiming

more than 200 lives.

London's FTSE 100 gained 0.2%. Fresh data

highlighted a sharp deceleration in Britain's economy in April,

partly due to Trump's tariffs and subdued consumer spending.

"The Bank of England will almost certainly leave

interest rates steady at its June meeting and will keep its

options open for the subsequent meeting in August," said Paul

Dales, chief UK economist at Capital Economics.

European Central Bank Executive Board Member Isabel Schnabel

said ECB interest rates are in a "good place" despite an

expected slowing of inflation.

Traders see just one more 25 basis point cut by the end

of 2025.

Among stocks, BE Semiconductor Industries (BESI)

rose 3.6% after raising its long-term financial targets ahead of

its investor day.

Halma gained 3.3% after the health and safety

device maker's annual adjusted pretax profit beat expectations.