Europe’s main stock index hit its lowest level in more than six months on Monday as concerns about a slowing U.S. economy dragged global shares lower, with energy and utilities stocks leading the broad losses.
The Stoxx 600 index closed down 2.2%, but moved away from its session low. The continental index recorded its biggest three-day decline since June 2022, closing below the key 500-point level for a second day.
Risk aversion prevailed amid fears that the United States could slide into recession, which severely affected trading on Wall Street and other stock markets, and increased hopes for interest rate cuts to stimulate economic growth.
News of a rebound in the US services sector in July provided some relief to traders, helping US and European stocks recoup some of the day’s losses.
As for other European indices, the German DAX, the French CAC 40, the British Financial Times and the Spanish IBEX 35 fell by rates ranging between 1.4% and 2.3%, reaching their lowest levels in several months during the day.
In a tough session for all European sectors, the energy sector hit a 6-month low, tracking lower oil prices, while utility stocks touched their lowest level in more than a month.
Banking stocks also fell to their lowest level in four months, due to fears that the US economy is entering a recession.
Meanwhile, the technology and chemicals sectors were among the least affected, although each fell about 1%.
On the corporate front, shares of Europe’s largest copper producer Europs plunged 12% after reporting pre-tax profits below expectations in the third quarter.
