European Stocks Close Lower Again On Growth Worries

(RTTNews) - European stocks closed lower on Wednesday on weak global cues amid concerns about the outlook for growth after data showed continued contraction in U.S. factory activity, and cooling labor market. A downward revision in Eurozone composite PMI weighed as well.

Investors fretted about weakening Chinese growth as well.

Economic activity in the U.S. manufacturing sector contracted in August for the fifth consecutive month and the 21st time in the last 22 months, raising concerns the world's largest economy is headed for recession.

Elsewhere, a private survey revealed that growth in China's services sector activity slowed in August despite the summer travel peak.

On the positive side, the euro area's private sector economic growth accelerated in August, thanks to a faster increase in services activity.

HCOB's composite Purchasing Managers' Index for countries in the currency union, compiled by S&P Global, improved to 51.0 in August from July's 50.

Eurozone producer prices increased for the second straight month in July driven by higher energy prices, data from Eurostat showed. Producer prices posted a monthly growth of 0.8% after a 0.6% gain. This was the second consecutive rise.

Elsewhere, the U.K. service sector activity expanded at the fastest pace in four months, final survey data from S&P Global showed. The corresponding index rose to 53.7 in August from 52.5 in the previous month.

The pan European Stoxx 600 fell 0.97%. The U.K.'s FTSE 100 ended down 0.35%, Germany's DAX and France's CAC 40 closed down 0.83% and 0.98%, respectively. Switzerland's SMI dropped 1.39%.

Among other markets in Europe, Austria, Denmark, Finland, Greece, Iceland, Netherlands, Poland, Spain, Sweden and Turkiye closed with sharp to moderate losses.

Belgium, Portugal and Russia ended higher, while Norway closed flat.

In the UK market, Airtel Africa tumbled more than 5%. Barratt Developments ended 4.5% down, after its profits dropped 75% in the year to June.

Burberry Group, Ashtead Group, Persimmon, Convatec Group, Entain, Taylor Wimpey, Vistry Group, Antofagasta and Pershing Square Holdings lost 2 to 4.5%.

Rolls-Royce Holdings, Imperial Brands, Vodafone Group, Compass Group, Bunzl, British American Tobacco and Melrose Industries gained 1 to 2%.

In the German market, Infineon dropped about 3.8%. Daimler Truck Holding, Adidas, SAP, Sartorius, Continental, HeidelbergCement, Siemens Healthineers, Mercedes-Benz, BMW, Porsche and Volkswagen lost 1 to 3.3%.

Commerzbank ended notably lower. According to a Bloomberg report, the German government plans to sell a stake of 3% to 5% in the lender.

V0novia gained about 2.35%. Deutsche Telekom, Fresenius Medical Care, Deutsche Boerse, MTU Aero Engines, Puma, Fresenius and Rheinmetall also closed notably higher.

In the French market, LVMH ended down 4.2%. Hermes International closed 3.8% down. Kering, Pernod Ricard, Capgemini, Saint-Gobain, STMicroElectronics, L'Oreal, Renault, Legrand, Dassault Systemes, Publicis Groupe and Veolia lost 1 to 2.3%.

Sanofi, Eurofins Scientific, Danone and Orange gained 1 to 1.5%.