🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

European shares fall to new one-and-a half-month-lows as global economy darkens

Published 08/10/2014, 09:34
© Reuters A trader is pictured at the desk in front of the DAX board at the Frankfurt stock exchange
UK100
-
DE40
-
AIRF
-
FTEU3
-

By Alistair Smout EDINBURGH (Reuters) - European stocks fell on Wednesday, hitting fresh 1 1/2-month lows as investors moved out of shares around the world in the face of a spate of discouraging signals about the global economy.

The pan-European FTSEurofirst 300 (FTEU3) index of blue-chip shares was down 0.4 percent at 1,324.71 at 0811 GMT, touching its lowest levels since mid-August.

Asian and U.S. shares fell overnight after the IMF cut global growth forecasts and German industrial production missed expectations.

In the latest evidence of economic malaise, growth in China's services sector weakened slightly in September as new business cooled, a private survey showed on Wednesday. This reinforced signs of a slowdown in the world's second-largest economy that could prompt more stimulus measures.

"It's concerns over global growth that are weighing on the equity markets," James Butterfill, global equity strategist at Coutts, said.

"If you look at Europe, there's very weak macroeconomic data, there's weak data coming out of China as well, so it does suggest weaker growth, and markets are perhaps adjusting to that.

Cyclical stocks, sensitive to economic optimism, bore the brunt of the selling. The top sectoral faller was travel and leisure , down 1.7 percent.

Airlines led the sector lower, having come under pressure from the spread of the Ebola virus to Europe, with Air France-KLM (PA:AIRF) down 4.7 percent after it said a pilot strike had wiped more than a fifth off its estimated full-year core profit.

Germany's DAX (GDAXI) was down 0.6 percent, continuing its underperformance from Tuesday after weak industrial data raised fears over the health of the euro zone's biggest economy.

It fell 53.90 points to 9,032.31 points, close to the psychologically and technically important 9,000 level, analysts said.

The index has not closed below 9,000 this year, had has bounced off its lows both times it has drifted below the level in 2014.

© Reuters. A trader is pictured at the desk in front of the DAX board at the Frankfurt stock exchange

"If the benchmark fell below this support, another negative signal would be generated," Roger Peeters, head of research at Close Brothers Seydler, said in a note.

(Editing by Toby Chopra)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.