European shares edged lower for the second straight session on Friday, as investors feared a new U.S. law backing protesters in Hong Kong would cloud the prospects of a preliminary Sino-U.S. trade deal.

On Thursday, China warned of 'firm counter measures' to the law supporting anti-government protesters in Hong Kong. The editor of China’s state-backed Global Times tabloid said later in a tweet those could include barring drafters of the legislation from mainland China, Hong Kong and Macau.

The pan-European STOXX 600 index was down 0.4% at 0806 GMT, but still on track for its best week in three after a boost from positive headlines on trade earlier in the week.

Source: Reuters