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European Markets Plummet On Growth Concerns

The major European markets opened lower on Wednesday and the losses accelerated as the day progressed on worrying signs about the health of the global economy.

A slew of Chinese economic data surprised to the downside in July, while German GDP shrank 0.1 percent sequentially in the second quarter, Eurozone economic growth halved in the second quarter and UK inflation accelerated.

Concerns about a potential global recession deepened following news from the United States that the yield on the benchmark ten-year note dropped below the yield on the two-year note earlier this morning - which is widely seen as an indicator of a recession.

Germany's DAX tumbled 257.47 points or 2.19 percent to 11,492.66, while London's FTSE skidded 103.02 points or 1.42 percent to 7,147.88 and the CAC 4o in France sank 111.76 points or 2.08 percent to 5,251.30.

In Germany, Infineon Technologies plummeted 5.52 percent, while Deutsche Bank plunged 5.21 percent, Thyssenkrupp tumbled 4.16 percent, Siemens sank 3.46 percent, Daimler dropped 3.07 percent, Deutsche Post skidded 2.00 percent, Deutsche Lufthansa fell 1.92 percent and Deutsche Telekom lost 0.34 percent.

In London, Ashtead Group plummeted 4.56 percent, while Prudential plunged 4.11 percent, Scottish Mortgage Investment tumbled 3.52 percent, Royal Dutch Shell sank 2.23 percent, Compass Group dropped 1.46 percent, Direct Line Insurance climbed 1.23 percent, Vodafone lost 0.44 percent and Centrica gained 0.21 percent.

In France, Societe Generale tumbled 4.09 percent, while Peugot dropped 2.92 percent, BNP Paribas lost 2.60 percent, Credit Agricole shed 1.95 percent, Vivendi was down 1.26 percent, Danone climbed 1.21 percent and Engie was down 1.19 percent.

In corporate news, Swiss elevator and escalator manufacturer Schindler saw its second-quarter profit declined 22 percent, while German wind turbine maker Nordex Group said it expects a significant rise in activity levels with considerably higher sales in the second half of the year.

German engineering and industrial services provider Bilfinger slipped to loss in the second quarter, versus net profit of 11 million euros in the prior year, while insurer Admiral Group posted modest profit growth in the first half, driven by more customers in its U.K. business.

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