European Stocks Close Lower Again On Growth Worries

(RTTNews) - European markets failed to hold early gains and ended weak on Thursday as worries about slowing growth and rising inflation weighed on sentiment.

Hopes about a less hawkish stance by the Federal Reserve are fading, prompting investors to make cautious moves and largely refrain from picking up stocks at higher levels.

Data from Destatis showed German factory orders decreased 2.4% month-on-month in August, reversing a revised 1.9% rise in July. Economists had forecast a moderate 0.7% drop in August. On a yearly basis, new orders were down 4.1% after a sharp 11% decline in July.

Eurozone retails sales fell 0.3% month-on-month in August and by 2% on an annualized basis, Eurostat said.

Fitch Ratings has cut the U.K.'s credit outlook from stable to negative, saying the large and unfunded fiscal package announced as part of the new government's growth plan could lead to a significant increase in fiscal deficits over the medium term.

The pan European Stoxx 600 declined 0.64%. The U.K.'s FTSE 100 ended 0.78% down, Germany's DAX shed 0.37% and France's CAC 40 drifted down 0.82%, while Switzerland's SMI lost 0.83%.

Among other markets in Europe, Austria, Belgium, Finland, Greece, Ireland, Netherlands, Norway, Portugal, Russia and Spain ended weak.

Czech Republic, Denmark, Iceland and Turkiye closed higher, while Poland and Sweden settled flat.

In the UK market, Kingfisher, Centrica, Rolls-Royce Holdings, Smith (DS), St. Jame's Place, Schrodders, Anglo American Plc, B&M European Value Retail and Next lost 2.7 to 5%.

Shell lost about 2.5% after a warning that its natural gas trading and refining divisions are under stress.

Imperial Brands gained 2.5%. The tobacco firm announced a 1 billion pounds ($1.13 billion) share buyback program and said FY22 trading has been in line with expectations.

Segro and Haleon gained 2.6% and 2.05%, respectively. Informa, Ashtead Group, Entain, Flutter Entertainment, Dechra Pharmaceuticals, Covatec Group and Prudential gained 1.3 to 2%.

In Paris, ArcelorMittal ended more than 4% down. Vinci, Accor, Engie, Orange and Bouygues lost 2 to 2.5%.

Kering, Veolia, Air Liquide, Essilor, Sanofi, Pernod Ricard, AXA, Capgemini and BNP Paribas also ended notably lower.

Faurecia rallied nearly 4.5%. Valeo surged 3.3% and Air France-KLM advanced 2.3%, while STMicroElectronics, Unibail Rodamco and Legrand gained 1.4 to 1.6%.

In the German market, E.ON, Munich RE and RWE lost 2.5 to 3%. Bayer, Deutsche Telekom, Deutsche Wohnen, Fresenius Medical Care, Merck, BASF, Brenntag, Vonocia and MTU Aero Engines shed 1 to 2%.

Zalando gained about 3.2%. Porsche Automobil, Volkswagen, Daimler, Qiagen, Sartorius, Puma and Continental gained 1.5 to 2.6%.