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Europe: Shares fall as growth angst and oil gloom
[LONDON] European shares retreated on Wednesday after data showing the German and Japanese economies contracted in the third quarter fuelled worries about global growth amid a plunge in oil prices.
The ongoing tug of war between the European Union and Italy over the government's 2019 budget also contributed to nervousness, with a palpable rise in Italian government bond yields.
The pan-European STOXX 600 lost 0.8 per cent by 0819 GMT with losses spread across continental bourses and sectors.
In London, the FTSE lost 0.8 per cent as Prime Minister Theresa May sought to convince her government to accept a draft European Union divorce deal that opponents said threaten the independence and the unity of the United Kingdom.
As a sign of the uncertainty regarding whether a Cabinet meeting will approve the deal, the pound was stable against the dollar despite the relief an orderly Brexit would be for markets.
The oil and gas sector and miners were down 1.9 per cent and 2.1 per cent respectively.