European Shares Extend Losses On US Recession Worries

(RTTNews) - European stocks fell on Friday to extend losses from the previous session as risk-off mood prevailed amid fears that the U.S. Federal Reserve has left it too late to begin cutting interest rates and risks damaging the world's largest economy.

On a light day on the economic front, France's industrial production recovered in June largely driven by the rebound in transport equipment output, data from the statistical office INSEE showed.

Industrial production registered a monthly growth of 0.8 percent in June, in contrast to the 2.2 percent decrease in May. However, this was weaker than the expected growth of 1.0 percent.

Manufacturing output also grew by 0.8 percent, reversing May's 2.7 percent decline. All eyes remain on the July jobs report, due out later in the day that could shed more light around the health of the U.S. economy.

The pan European STOXX 600 fell 1.5 percent to 504.07 after falling 1.2 percent on Thursday.

The German DAX lost 1.3 percent, France's CAC 40 shed 0.7 percent and the U.K.'s FTSE 100 was down 0.4 percent.

Tech stocks were coming under selling pressure after U.S. chipmaker Intel said it would cut more than 15 percent of its workforce in a desperate cost-cutting bid.

ASM International plunged 9.4 percent, BE Semiconductor plummeted 7.5 percent, ASML declined 6.5 percent and Infineon Technologies tumbled 3.4 percent.

French insurer AXA rallied 2.3 percent. Its arm AXA Investment Managers has entered into negotiations to sell its investment arm to BNP Paribas in a €5.1bn deal. Shares of BNP Paribas dropped 1 percent.

Energy company Engie jumped 3.3 percent. The company lifted its profit guidance for 2024, citing a strong first-half performance in power generation and lower-than-expected financial costs.

British outsourcing firm Capita fell nearly 3 percent after reporting a fall in first-half revenue.

Wizz Air Holdings lost 4 percent as it reported a decline in both passenger numbers and seating capacity in July.

British Airways owner IAG jumped 6.3 percent after it posted strong first-half results and announced plans to pay a dividend for the first time since the start of the Covid-19.

GSK climbed 2.3 percent on receiving the U.S. FDA approval for its Jemperli treatment in combination with chemotherapy.