European Shares Tumble On Tapering Woes
European stocks fell sharply on Thursday as miners and energy companies slumped amid worries about a slowdown in global growth in the second half of the year.
Uncertainties about Fed’s tapering plans also dented sentiment after minutes of the Fed’s July meeting showed there was broad consensus among policymakers to reduce their monthly bond buying later this year.
The pan European Stoxx 600 tumbled 2.2 percent to 464.05 after closing 0.1 percent higher in the previous session. The German DAX lost 2 percent, France’s CAC 40 index gave up 2.9 percent and the U.K.’s FTSE 100 was down 2.2 percent.
Swiss building materials supplier Geberit declined 3.2 percent. The producer and supplier of sanitary ware and bathroom ceramics has warned about rising raw materials prices after reporting higher-than-expected first-half earnings.
Miner Anglo American plummeted 11 percent, Antofagasta fell over 5 percent and Glencore declined 3 percent.
TotalEnergies, BP Plc and Royal Dutch Shell plunged 4-5 percent as oil extended losses on data showing a surprise build in U.S. gasoline inventories.
Shares of McBride plummeted as much as 10 percent. The manufacturer of private label and contract manufactured products said it now expects fiscal 2022 adjusted profit before tax to be 55- 65 percent lower than current market consensus for full year 2021.
Travel and leisure stocks fell amid a surge in cases of the Delta variant of the coronavirus. EasyJet dropped 1.4 percent, TUI AG gave up 1.7 percent and IAG, the owner of British Airways, declined 2.4 percent. Lufthansa and Air France KLM both fell over 1 percent.
Drug maker AstraZeneca fell 1.1 percent after its chief executive Pascal Soriot, was named Britain’s highest paid company boss in 2020.
Volkswagen lost 2.9 percent after the German carmaker said it may need to cut production further due to a semiconductor supply crunch. BMW and Daimler both were down around 2.5 percent.
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