European Shares Decline On Growth Worries

European stocks fell on Wednesday after data showed Chinese exports and imports lost momentum in August, adding to headwinds for the world’s second-largest economy.

Closer home, German industrial production fell 0.3 percent on a monthly basis, reversing a 0.8 percent rise in June, Destatis reported. Output was forecast to decline 0.5 percent.

Year-on-year, industrial production logged a decline of 1.1 percent after easing 0.1 percent in June.

Eurozone Q2 GDP came in at 0.80 percent, higher than a 0.6 percent rise in the second estimate.

All eyes now turn to the European Central Bank (ECB) meeting due Thursday given talk of a faster pace of tightening.

Euro zone bond yields rose today amid increased bets on a 75-basis point rate hike from the ECB to tame record-high inflation.

The pan European Stoxx 600 was down 0.6 percent at 412.10 after gaining 0.2 percent on Tuesday.

The German DAX and France’s CAC 40 both slipped half a percent, while the U.K.’s FTSE 100 was down 0.8 percent ahead of parliamentary testimony from the Bank of England governor.

Miners Anglo American, Antofagasta and Glencore dropped 1-2 percent on concerns over demand outlook.

Oil & gas firm BP Plc and Shell both fell around 1 percent as oil prices hit seven-month lows on demand worries.

James Fisher, a provider of marine engineering services, plunged 5.7 percent after posting a fall in interim profit.

Housebuilder Barratt Developments declined 1 percent despite posting record annual results.

SGL Carbon SE shares soared 12 percent. The maker of carbon-based products has raised its outlook for the fiscal 2022, citing continued good business development, especially in the Carbon Fibers Business Unit.

Gerresheimer AG fell 2.6 percent after it joined hands with Stevanato Group to develop a high-end Ready-To-Use solution platform with an initial focus on vials, based on Stevanato Group’s EZ-fill technology.

Energy giant Uniper plunged 5 percent after warning natural gas prices could jump even higher.

Siemens Energy lost 4.6 percent after Gazprom said Russia’s biggest natural gas pipeline to Europe will not resume pumping until the company repairs faulty equipment.

Siemens Energy said Tuesday that it did not comprehend Gazprom’s presentation of the situation.

Repsol declined 1.3 percent. The Spanish energy and petrochemicals firm has agreed to sell 25 percent of its upstream business for $4.8 billion to EIG Global Energy Partners, an institutional investor in the energy sector.

Source: Read Full Article