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European Shares Retreat On Growth Concerns

stockmarkets aug16 08jun22 lt

European stocks fell in cautious trade on Wednesday as the World Bank and the Organization for Economic Cooperation and Development slashed global growth forecasts.

Underlying investor concerns about slowing growth, preliminary figures showed Germany's industrial production grew less than expected in April.

Industrial production rose a price, seasonally and calendar adjusted 0.7 percent from March, when output fell a 3.7 percent, which was revised from 3.9 percent, Destatis said. Economists had forecast 1.0 percent growth.

On a year-on-year basis, production decreased 2.2 percent in April after a 3.1 percent slump in the previous month.

Ahead of Thursday's ECB meeting, Eurostat data showed the euro zone economy grew much faster in the first quarter of the year than in the previous three months.

The final reading for the January-March period showed GDP of the 19 countries sharing the euro rose 0.6 percent sequentially for a 5.4 percent annual expansion.

The pan European Stoxx 600 dropped 0.4 percent to 441.05 after declining 0.3 percent on Tuesday.

The German DAX, France's CAC 40 index and the U.K.'s FTSE 100 were down between 0.2 percent and 0.6 percent.

Swiss lender Credit Suisse plunged 5.4 percent after it warned of a likely group-wide second-quarter loss, citing "challenging" market conditions.

French spirits group Pernod Ricard lost 2.5 percent after saying it was banking on digital push to boost growth.

Schneider Electric dropped 1.3 percent. The leader in the digital transformation of energy management and automation has inked a deal to sell its Eurotherm business unit to Watlow Electric Manufacturing Company.

Lower iron ore and base metal prices weighed on the mining sector, with Anglo American, Antofagasta and Glencore losing 1-3 percent.

Energy stocks such as BP Plc and Shell were seeing modest gains as oil prices rose on expectations of solid demand and low inventories.

Drug major AstraZeneca gained 1 percent after it announced positive results of COVID-19 treatment Evusheld in TACKLE Phase III treatment trial.

Industrial software firm Aveva rallied 3.8 percent after delivering "solid" full-year results, lifting dividend and backing its FY23 outlook.

Melrose Industries soared nearly 10 percent after the GKN owner announced a £500m share buyback.

Low-cost airline Wizz Air slumped 7 percent after it forecast more losses at the start of the summer season.

Spanish clothing company Inditex jumped more than 4 percent after reporting an 80 percent increase in first-quarter net profit.

Kindred Group soared 9 percent after the online gambling operator secured a gambling license in the Netherlands.

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