Plus   Neg

European Shares Slide On China Growth Concerns


European stocks retreated on Friday after the Federal Reserve reaffirmed its monetary tightening stance and data showed China's producer price inflation slowed for the fourth month in October on cooling domestic demand.

Closer home, French industrial production logged a monthly drop of 1.8 percent in September, in contrast to a 0.2 percent rise in August, official data showed. This was the first fall in five months and the biggest since January.

Another report showed that U.K. GDP grew 0.6 percent sequentially in the third quarter, matching expectations.

The pan-European Stoxx Europe 600 index was down 0.6 percent at 364.92 in opening deals after rising 0.2 percent the previous day.

The German DAX was losing 0.7 percent, France's CAC 40 index was declining 0.8 percent and the U.K.'s FTSE 100 was down half a percent.

Total SA fell over 1 percent, BP Plc shed 0.9 percent and Tullow Oil lost 2.8 percent as oil futures entered a bear market on concerns over rising supply and economic slowdown.

Banks were moving lower as Italian bonds extended losses on renewed concerns over the country's debt situation. Commerzbank, Deutsche Bank and BNP Paribas were down around 2 percent each.

UBS tumbled 3.5 percent. The Swiss bank said it would contest residential mortgage-backed securities civil complaint filed by United States Department of Justice.

Richemont slumped more than 6 percent. The luxury good group reported a fall in first-half underlying net profit amidst growing volatility in consumer demand.

ThyssenKrupp plunged 11 percent in Frankfurt as it lowered its profit outlook for the second time this year, citing legal provisions for a probe into steel-price fixing.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT