European Stocks Close Notably Lower On Growth Worries

(RTTNews) - European stocks closed lower on Wednesday amid concerns about global economic growth after weak eurozone business output data and disappointing Chinese service sector activity report.

Lingering worries about the impact of rising interest rates on global growth weighed as well.

Investors also awaited the release of Fed meeting minutes due later in the day.

The pan European Stoxx 600 ended 0.73% down. The U.K.'s FTSE 100 dropped 1.03%, Germany's DAX shed 0.63% and France's CAC 40 drifted down 0.8%, while Switzerland's SMI cloed lower by 0.21%.

Among other markets in Europe, Austria, Finland, Iceland, Netherlands, Norway, Poland, Spain and Sweden ended notably lower. Belgium, Greece, Ireland, Portugal and Russia posted modest losses.

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

Ocado Group tumbled 6.8%. Prudential, Severn Trent, United Utilities, M&G, SSE, Anglo American Plc, Ashtead Group, RS Group, BP, Shell, Antofagasta, Burberry Group, Legal & General, IMI, Johnson Matthey, Hiscox and National Grid lost 2 to 4%.

Pearson gained nearly 2.5%. Tesco, Convatec and AstraZeneca posted modest gains.

In the German market, Siemens Energy declined more than 5%. Allianz, Zalando, Adidas, Infineon, Deutsche Boerse, Deutsche Bank, Henkel, Vonovia, BASF and Frsenius lost 1 to 3%.

Continental rallied nearly 3%. Mercedes-Benz, Qiagen, Commerzbank, Covestro, Fresenius Medical Care and MTU Aero Engines gained 0.7 to 1.2%.

In Paris, AXA ended 3.6% down. Kering, WorldLine, ArcelorMittal, Air Liquide, Bouygues, Pernod Ricard, Teleperformance, TotalEnergies, Saint Gobain, Vinci, LVMH, Carrefour and Publicis Groupe ended lower by 1 to 3%.

Renault rallied 2.6%. Essilor climbed about 1.8% and Airbus Group advanced 1%.

On the economic front, final data from S&P Global showed Euro area private sector activity stalled in June amid the deepening downturn in manufacturing and the slowdown in services activity.

The final HCOB composite output index dropped more-than-estimated to 49.9 in June, as estimated, from 52.8 in May. The flash reading was 50.3.

The downturn in manufacturing deepened in June, while services sector continued to expand, albeit at a softer pace. The services Purchasing Managers' Index, or PMI, fell to a five-month low of 52.0 from 55.1 in May. The reading was below the initial score of 52.4.

The German private sector PMI declined sharply to 50.6 from 53.9 in May. The flash score was 50.8. The services measure posted 54.1, which was well below May's 57.2, to match the flash estimate.

France's private sector entered the contraction zone in June as services activity weakened. The composite output index registered 47.2 in June, down from 51.2 in May. The reading was below the 50.0 mark for the first time since the start of the year. The flash score was 47.3.

The services PMI fell to 48.0 in June, in line with the initial estimate, from 52.5 in May.

France's industrial production climbed 1.2% month-on-month in May, faster than the 0.8% rebound in April, data from INSEE showed.

The UK service sector continued to expand in June but the upturn moderated as rising interest rates and economic uncertainty weighed on consumer demand, final survey results from S&P Global showed.

The final Chartered Institute of Procurement & Supply services Purchasing Managers' Index dropped to 53.7 in June, as estimated, from 55.2 in May. The score signaled a slowdown in service sector output growth to the weakest since March.

Data from Eurostat showed eurozone producer prices declined for the first time since late 2020 on sharp reduction in energy prices, falling by 1.5% in May, after rising 0.9% a month earlier.

UK car sales increased for the eleventh successive month in June and at a sharper rate, thanks to easing supply chain shortages caused by the pandemic, the Society of Motor Manufacturers and Traders, or SMMT, said. Car registrations grew by 25.8 percent year-over-year in June.