* BP boosts dividend after profit hits 14-year high
* Pelosi visits Taiwan despite China warnings
* Semiconductor stocks down
* STOXX down 0.2%; financial services lead losses
Aug 2 (Reuters) - European shares fell on Tuesday as weak
global factory data fanned economic slowdown fears, while
markets were jittery on simmering U.S.-China tensions over
The pan-European STOXX 600 slipped 0.2%, a day
after declining on concerns about a cooling global economy
following disappointing euro zone manufacturing activity data.
On Tuesday, U.S. House of Representatives Speaker Nancy
Pelosi arrived in Chinese-claimed Taiwan aboard a U.S. military
aircraft, the first such visit in 25 years and one that risks
pushing relations between Washington and Beijing to a new low.
"After the best month for STOXX 600 in July, European
equities are giving back some of those gains to kick off August,
suggesting the rally was slightly overdone," said Victoria
Scholar, head of investment at Interactive Investor.
"Although Pelosi's visit could create a deeper strain
between Beijing and Washington, it is unlikely to result in
actual military conflict."
Nonetheless, global markets were jittery, with U.S. stocks
struggling for gains and the dollar and gold rallying.
"The fact that the timing coincides with renewed jitters
about a recession following yesterdays downbeat PMI indicators
globally, investors are nervous about the possibility of China
retaliating with fresh trade restrictions on U.S. imports," said
Raffi Boyadjian, lead investment analyst at brokerage XM.
In Europe, miners were among the biggest drags,
falling 1.4% amid a drop in commodities' prices as traders
rushed to safer assets.
Semiconductor stocks such as ASML Holding, ASM
International and BE Semiconductor fell
between 1.2% and 2.2%.
Meanwhile, Moody's Investors Service flagged an increased
risk of stagflation in European Union countries.
Across European indexes, UK'S FTSE 100 fell the
least among European peers thanks to bumper profits from oil
giant BP, shares of which firmed 2.8%.
Maersk gained 2.1% after raising its 2022
profit guidance for a second time following a beat in quarterly
revenue, as congested supply chains boost freight rates.
Ferrari gained 1.1% after beating earnings
forecasts and reporting record orders for the second quarter,
prompting the luxury sports car maker to also raise its
Second-quarter earnings for companies that are part of the
STOXX 600 are expected to rise 28.1% from a year earlier,
according to Refinitiv, slightly higher than estimates of 23.1%
from last week.
(Reporting by Bansari Mayur Kamdar and Anisha Sircar in
Bengaluru; Editing by Shounak Dasgupta and Maju Samuel)