European Shares Slip On Inflation, Growth Worries
European stocks were broadly lower on Wednesday after Wall Street posted its biggest loss in two years overnight on worries the Federal Reserve is likely to raise U.S. borrowing costs faster and further than previously expected.
Meanwhile, Eurozone industrial production fell more than expected in July, raising worries about slowing growth.
Output from factories, mines and utilities fell 2.3 percent sequentially in July, Eurostat said while analysts had expected a 0.7 percent decline.
Elsewhere, U.K. consumer price inflation slowed slightly in August from a 40-year high amid a fall in fuel prices, figures from the Office for National Statistics (ONS) showed earlier today.
Consumer price inflation unexpectedly slowed to 9.9 percent in August from 10.1 percent in July. The rate was forecast to rise slightly to 10.2 percent.
The pan European Stoxx 600 was down 0.2 percent at 420.28 after declining 1.6 percent on Tuesday.
The German DAX dipped 0.3 percent, France’s CAC 40 index was marginally lower and the U.K.’s FTSE 100 shed 0.7 percent.
Uniper lost 4.4 percent. The German government may increase its stake in the company above 50 percent and is open to taking the historic step of fully nationalizing the country’s biggest gas importer if necessary to prevent a collapse of the energy system, Bloomberg News reported.
Spanish electric utility company Iberdrola SA fell over 1 percent after it agreed to sell a 49 percent stake in Wikinger offshore wind farm in Germany to Swiss infrastructure investment company Energy Infrastructure Partners.
Fashion brand Zara’s owner Inditex jumped over 5 percent after posting strong Q2 revenue and earnings.
British housebuilder Redrow rose nearly 2 percent after its second-quarter revenue and profit topped forecasts.
Dunelm rallied 3.5 percent after the furniture retailer reported record preliminary results for the 53 weeks to 2nd July 2022.
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