Europe: Shares hit 7-week lows as rate hike fears grow

European shares kicked off September on a dour note, as worries of aggressive rate hikes and record-high inflation in the region dragged the STOXX 600 to near 7-week lows on Thursday (Sep 1).

The pan-European STOXX 600 slid for a fifth straight day, dropping 0.8 per cent by 0715 GMT.

All sectors traded lower, with rate-sensitive tech stocks being among the biggest decliners. Miners shed 1.8 per cent after metals prices tumbled.

Eurozone money markets priced in a roughly 80 per cent chance of a 75 basis point rate hike by the European Central Bank at its meeting next week, compared with just over 50 per cent on Wednesday.

Among stocks, Germany's Lufthansa fell 3.2 per cent after a pilots' trade union announced on Wednesday a strike set to begin Friday as the 2 parties failed to reach an agreement on wages.

Luxury stocks were under pressure, with Loius-Vuitton owner LVMH, Hermes and Burberry down between 1.6 per cent and 2.2 per cent.

German retail sales rose unexpectedly in July as online retail and the food sector showed recovery, data showed. Focus was also on European manufacturing PMI data due at 0800 GMT. Reuters

READ MORE

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes