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Europe: Shares retreat on China concerns, E.ON down sharply

Thursday, September 10, 2015 - 15:24
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European shares rose on Wednesday after reaching 2015 lows as a bruising quarter ended, with a Chinese tax cut boosting automakers while miner Glencore rallied after saying it had no solvency issues.

[LONDON] European shares retreated on Thursday, tracking sharp losses on Wall Street and in Asia, after the latest Chinese data signalled that deflation remained a significant risk for the world's second-largest economy.

China's manufacturers slashed prices at the fastest rate in six years in August as commodity prices fell and demand cooled. The producer price index fell 5.9 per cent in August from the same period last year, its 42nd consecutive month of decline.

The FTSEurofirst 300 index of top European shares was down 1.1 per cent at 1,419.63 points by 0705 GMT after rising 1.4 per cent in the previous session.

German utility E.ON fell 3.7 per cent after saying it would book a significant net loss in 2015. It also added that it will retain responsibility for the remaining operation and dismantling of its nuclear generating capacity in Germany and not transfer it to Uniper.

REUTERS