European Shares Retreat On Recession Worries

(RTTNews) - European stocks fell sharply on Thursday as fears mounted that the Fed might trigger a recession sometime in the next year with its aggressive rate action.

Earlier today, the Swiss National Bank unexpectedly increased interest rates for the first time since 2007.

The monetary policy announcement from the Bank of England is due, with analysts expecting another 25-bps rate hike coupled with cautious commentary around the economy.

The pan European Stoxx 600 was down 1.6 percent at 406.52 after rising 1.4 percent on Wednesday.

The German DAX plunged 2.4 percent, France's CAC 40 index gave up 1.8 percent and the U.K.'s FTSE 100 was down over 2 percent.

Roche declined 1.5 percent after the Swiss drug maker announced a setback in the development of its crenezumab drug for the treatment of Alzheimer's disease.

British fashion retailer ASOS plunged 27 percent and rival Boohoo slumped 18 percent after both reported slowing sales.

CRH, a building materials business, fell 2.6 percent after it has entered into arrangements with UBS A.G., London Branch to repurchase shares on CRH's behalf for up to $300 million.

BHP shares fell over 2 percent. The miner announced it will retain New South Wales Energy Coal in its portfolio.

Capgemini SE lost almost 2 percent. The French IT services and consulting company said it plans to open semiconductor design services centers across Europe.

Automakers BMW, Volkswagen and Renault tumbled 2-3 percent after industry data showed European passenger car registrations declined for the tenth successive month in May, but at a slower pace.

Software maker Dassault Systèmes SE lost 3.2 percent. The company said that it is on the trajectory to achieve its 2024 non-IFRS earnings per share objective and is well positioned to capitalize on significant long-term growth opportunities.

Food retailer Casino Group shed 3.5 percent after it inked a deal with Gorilla, an on-demand grocery delivery company, to extend their partnership for the Frichti, a French groceries platform.