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European Shares Slide Amid China Evergrande Crisis

stockmarkets jan18 20sep21 lt

European shares fell sharply on Monday to hover near two-month lows, with worries about slowing global growth, concerns over a potential spillover of the debt crisis at China Evergrande Group and the prospect of tighter monetary policy due to Fed tapering keeping investors nervous.

In economic releases, German producer price inflation rose to 12 percent in August from 10.4 percent in July, Destatis reported. This was the biggest growth since December 1974, when prices were up 12.4 percent amid the first oil crisis.

Traders braced for the U.S. Federal Reserve's policy meeting on Tuesday and Wednesday, where the central bank is expected to lay the groundwork for a tapering.

The pan European Stoxx 600 dropped 8 points, or 1.8 percent, to 453.42 after losing 0.9 percent on Friday.

The German DAX lost 2.2 percent, France's CAC 40 shed 2.1 percent and the U.K.'s FTSE 100 was down 1.7 percent.

Miners led losses, with Antofagasta, Glencore and Anglo American losing 5-8 percent.

BP Plc fell over 1 percent and Royal Dutch Shell lost 2 percent as oil extended losses from the previous session.

AstraZeneca rallied 2.7 percent. The pharmaceutical giant said that its cancer treatment Enhertu reduced the risk of disease progression or death by 72 percent in patients with HER2-positive metastatic breast cancer.

Insurer Prudential plunged 7 percent after it announced a share offer to raise up to 5 percent of its issued share capital on the Hong Kong Stock Exchange through a concurrent Hong Kong public offer and international placing.

Software company ZOO Digital Group rose about 1 percent after issuing a trading update for the first half year.

China-exposed luxury stocks fell as a payment deadline loomed for debt-laden China Evergrande Group. LVMH, Kering, Hermes and Richemont gave up 2-3 percent.

Daimler AG declined 3.4 percent. Media reports quoted the chief of its truck division as saying the unit had seen the supply of crucial chips tighten further in recent weeks.

Airline Lufthansa advanced 1.6 percent as it announced a capital increase to repay part of a government bailout.

Automotive and industrial supplier Schaeffler AG tumbled 4.4 percent after opening a new production facility at its Szombathely location in the west of Hungary.

Alstom shares were down 3.1 percent in Paris as a diplomatic spat between France and Australia over a cancelled submarine deal rages.

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