Breaking News
Investing Pro 0
🙌 It's Here: the Only Stock Screener You'll Ever Need Get Started

European shares hit one month-low as growth worries intensify

Published Oct 02, 2019 05:03AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
UK100
+1.56%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DE40
+1.25%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CSGN
+2.32%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NELES
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
FLTRF
+1.11%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
STOXX
+1.51%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Shreyashi Sanyal and Sruthi Shankar

(Reuters) - European shares hit a one month-low on Wednesday, with London stocks lagging the most on fresh worries over Brexit, while global growth fears intensified after several dismal factory reports were released across the bloc and the United States.

The FTSE 100 index (FTSE) slipped 1.2%, the largest drop across European regions and ahead of UK Prime Minister Boris Johnson's talks with Brussels as he prepares to unveil his final Brexit offer later in the day.

Investors were also still reeling from the shock of dismal U.S. and euro zone factory data on Tuesday, which saw the pan-European STOXX 600 index (STOXX) and the euro zone index (STOXXE) log their biggest one-day drop in two months.

A drawn out U.S.-China trade war, along with slowing economic growth and Britain's dramatic exit from the European Union, have rattled European equity markets this year. The STOXX 600 gained around 2% in the third-quarter compared with 12% in the first three months of the year.

But more heartache may be around the corner as European companies could be set for their worst quarterly earnings in three years as revenue drops for the first time since early 2018, according to the latest Refinitiv data.

"It's going to be a tough season and the most important thing will be how the companies view going into Q4 and the early outlook for 2020, which is shaping up to be a tough year for markets and corporates," said Neil Campling, analyst at Mirabaud Securities.

Data on Tuesday from Europe's powerhouse - Germany - showed manufacturing recession deepening in the bloc's biggest economy. Frankfurt shares (GDAXI) fell 0.9% to their lowest level since early September, extending a drop from Tuesday.

Euro zone bond yields inched up on Wednesday, in a sign that investors were bracing for further deterioration in economic growth. All eyes are now on the release of service sector data from the euro zone on Thursday.

The STOXX 600 index (STOXX) dropped 0.9%, with the commodity-linked basic resources sector (SXPP) falling the most, tracking a drop in metal prices.

Finnish engineering firm Metso (H:METSO) fell 5%, the most on the STOXX 600 after J.P.Morgan and Credit Suisse (SIX:CSGN) downgraded the company's stock.

In a bright spot, the travel & leisure sector (SXTP) gained 0.4% and was the sole gainer among the major European sub-sectors as gambling stocks outperformed.

Flutter Entertainment (I:FLTRE), formerly known as Paddy Power Betfair, jumped 15% after the company agreed to merge in an all-share deal with Stars Group Inc (TSG) (TO:TSGI), owner of Poker Stars.

European shares hit one month-low as growth worries intensify
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Brad Dover
Brad Dover Oct 02, 2019 4:01AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
this is one of the crappiest stock markets I ever traded. . . and this horrific stock market is about to take a huge HIT. . . over a 50 percent hit too.......just like we saw with GWB. . . . . thnaks MAGA and trump for this
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email