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European shares dip as Fed saps post U.S. midterms rally

Published 09/11/2018, 08:31
Updated 09/11/2018, 08:40
© Reuters. The German share price index DAX graph at the stock exchange in Frankfurt
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LONDON (Reuters) - European shares dipped at the open on Friday, joining a global market retreat that spread from Wall Street to Asian markets after the Federal Reserve noted a dip in U.S. business investment and suggested a rate hike was on track for December.

A number of disappointing corporate earnings also weighed on morale, as Germany's Thyssenkrupp (DE:TKAG) fell to its lowest levels since July 2016 after cutting its profit outlook for the second time this year.

The pan-European STOXX 600 (STOXX) was down 0.5 percent at 0817 GMT, while the leading index of euro zone stocks (STOXX50E) was falling at roughly the same pace.

All European bourses and most sectors were in negative territory with Germany's DAX (GDAXI) down 0.6 percent and France's CAC 40 (FCHI) losing 0.7 percent.

© Reuters. The German share price index DAX graph at the stock exchange in Frankfurt

The energy sector also acted as a drag with oil majors weighing on indexes as rising supply and concerns of an economic slowdown pressured prices, with U.S. crude down by around 20 percent since early October.

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