European Shares Tumble As Recession Risks Mount
European stocks tumbled on Thursday, as the boost from the Bank of England’s intervention in bond markets began to fade and Sweden’s coast guard discovered a fourth gas leak on the damaged Nord Stream pipelines, heightening energy security concerns.
The British pound resumed its slide, snapping a two-day gain, as prime minister Liz Truss doubled down on her tax cutting and borrowing plans.
In economic releases, a measure of economic sentiment in the euro area deteriorated again in September, the European Commission said.
The corresponding index – an aggregate measure of business and consumer confidence—dropped to 93.7 from 97.3 in August, the lowest reading since November 2020, weighed by high inflation and a darkening economic outlook.
German inflation data is awaited later in the day.
The pan European Stoxx 600 fell 1.3 percent to 384.41 after gaining 0.3 percent on Wednesday.
The German DAX dropped 1.2 percent, France’s CAC 40 index shed 1.4 percent and the U.K.’s FTSE 100 was down 1.1 percent.
H&M, the world’s No.2 fashion retailer, lost 3 percent after posting dismal third-quarter earnings, hit by soaring input costs, slowing consumer spending and its exit from Russia.
Next Plc plunged 8.4 percent in London as the clothes retailer issued its second profit warning this year, citing tough trading in August and cost-of-living pressures.
Avon Protection, a maker of protection and defense products, jumped nearly 7 percent.
The company has received its first $42.1 million delivery order from the U.S. Army under the Next Generation Integrated Head Protection System or NG IHPS helmet contract.
German automotive part supplier HELLA gave up 2.7 percent after it posted a decline in earnings before interest and taxes for the first quarter, on higher costs especially for materials, energy and logistics, and high capital expenditures.
Rational AG soared over 15 percent after raising its sales revenue and profit forecast for 2022.
Source: Read Full Article