European shares retreat amid interest rate jitters, recession fears



(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)

*

Euro zone business activity falls in Sept -PMI

*

U.S. data indicates strong labour demand

*

Britain's Tesco falls after trimming profit view

(Updates to market close)

By Devik Jain and Amruta Khandekar

Oct 5 (Reuters) - European shares dropped on Wednesday, snapping a three-day rally as investors tempered expectations of central banks toning down their hawkish stance on inflation, with declining business activity in the region fuelling fears of an economic downturn.

After rallying more than 5% in the previous three sessions, the pan-European STOXX 600 index .STOXX was down 1% as a sharp rate hike from New Zealand's central bank on Wednesday jolted investors and weighed on risk sentiment.

The index had logged its best one-day performance since mid-March on Tuesday after weaker U.S. manufacturing data, shrinking U.S. job openings and a smaller-than-expected rate hike from the Reserve Bank of Australia spurred hopes that central banks globally could shift to less-aggressive rate hikes in future.

"(Today) is a realisation that it's still too early to conclude the pivot is coming," said Azad Zangana­, senior European economist and strategist at Schroders.

Employment data from the United States on Wednesday did little to allay jitters about rate hikes. U.S. private employers stepped up hiring in September, while the Institute for Supply Management's services industry employment gauge also shot up, suggesting strong labour demand.

Investors are now waiting for a more comprehensive U.S. nonfarm jobs report due on Friday for further clues on the state of the labour market and whether the Federal Reserve could pivot from its current ultra-hawkish approach.

Meanwhile, the latest data showed euro zone business activity contracted for a third month in September, dashing any hopes the currency union will avoid recession.

"I think Europe is falling into quite a steep recession," said Patrick Armstrong, chief investment officer at Plurimi Wealth. "You've got a consumer who's being pulled by utility bills and petrol prices...Manufacturing is going to slow a lot as electricity prices go up."

The STOXX 600 index has fallen 18.2% so far this year as the region grapples with an energy crisis exacerbated by the Russia-Ukraine conflict and concerns about an economic downturn with agg ressive policy moves by the U.S. Fed and other central banks.

Nearly all STOXX 600's sectoral indexes fell, led by real estate stocks .SX86P and retailers .SXRP . Telecom stocks .SXKP and banks .SX7P fell 2.2% and 2.1% respectively.

London's blue-chip FTSE 100 .FTSE was off 0.5% while the more domestically oriented FTSE 250 .FTMC was down 1.5%.

Among single stocks, Tesco TSCO.L slid 4.1% after Britain's biggest retailer forecast full-year profit at the lower end of its previous guidance.

Shares of Bachem Holding AG BANB.S gained 2.2% as the biotech supplier floated plans to build a third site in Switzerland.
Reporting by Devik Jain and Amruta Khandekar in Bengaluru; Editing by Sherry Jacob-Phillips, Bernadette Baum and Mark Heinrich

免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。

所有缐上交易平台所發佈的資料,僅適用於教育/資訊類用途,不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議,或是交易價格紀錄,或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。

本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。

風險提示:您的資金存在風險。槓桿商品並不適合所有客戶。請詳細閱讀我們的風險聲明