May 24, 2018 / 9:26 AM / a year ago

UPDATE 2-European shares led lower by autos stocks, Deutsche Bank

* STOXX ends at 8-day low

* Autos stocks drop after U.S. launches import probe

* Deutsche Bank announces job cuts, shares fall

* Italian stocks under fresh pressure (Adds details, closing prices)

By Kit Rees and Danilo Masoni

LONDON/MILAN, May 24 (Reuters) - European stocks fell on Thursday as carmaker shares came under pressure after the United States launched an investigation into auto imports, while Deutsche Bank dropped after announcing thousands of job cuts.

The STOXX 600 index fell 0.5 percent to an 8-day low, reversing earlier gains as global equities came under pressure after U.S. President Donald Trump cancelled a planned meeting with North Korean leader Kim Jong Un.

Continued uncertainty over the make-up of the Italian government also weighed. Italy’s FTSE MIB index fell 0.7 percent to a fresh 7-week low after coalition parties called for the naming of a eurosceptic economy minister.

German carmakers Daimler, BMW and Volkswagen dropped 1.7 to 2.8 percent after the United States began a national security investigation into car and truck imports that could lead to new U.S. tariffs.

Germany’s benchmark DAX index fell 0.9 percent and Europe’s autos sector was the worst-performing, losing 1.8 percent.

Deutsche Bank touched its lowest level since September 2016, ending 4.8 percent down after saying it would cut thousands of staff in a revamp of its investment bank.

Analysts at KBW Research said in a note they found Deutsche Bank’s finalised business review “disappointing”, adding: “With the revenue loss from front office staff headcount reductions and expectations already at management target levels, we believe this is priced in and therefore leaves execution risk.”

Deutsche Bank’s shares are down more than 31 percent so far this year.

Aryzta was a standout faller among individual stocks. Its shares slumped 27 percent after the Swiss food company cut its full-year earnings outlook once more.

Industrial distribution firm Electrocomponents jumped 16 percent after reporting double-digit growth in annual revenue and profit, while food ingredients firm Tate & Lyle rose 7 percent after posting higher annual profits.

Reporting by Kit Rees and Danilo Masoni Editing by Mark Heinrich

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