European Stocks Slide On Growth Worries, End Lower For 5th Straight Day

(RTTNews) - European stocks closed lower on Tuesday, posting losses for a fifth straight session, as worries about surging inflation, rising interest rates and slowing growth continued to weigh on sentiment.

In its World Economic Outlook published today, the International Monetary Fund (IMF) predicts global growth will slow to 2.7% next year, 0.2 percentage points lower than its July forecast.

The IMF anticipates 2023 will feel like a recession for millions around the world. "The worst is yet to come, and for many people 2023 will feel like a recession," the report said, echoing warnings from the United Nations, the World Bank and many global CEOs.

The U.S. efforts to hobble China's semiconductor industry, an escalating conflict in Ukraine and China's COVID woes also added to worries over a possible global recession.

German government bond yields held near 11-year highs after reports Chancellor Olaf Scholz was prepared to back European Union-wide joint debt issuance to help the bloc's members tackle the energy crisis.

Meanwhile, to restore orderly market conditions, the Bank of England today expanded its emergency bond purchase program to include inflation-linked debt.

The focus was also on the virtual G7 meet. The leaders of the Group of Seven countries and Ukrainian President Volodymyr Zelenskyy have begun urgent talks to discuss support for Ukraine following Russia's largest aerial assault against cities since the war began.

The pan European Stoxx 600 drifted down 0.56%. The U.K.'s FTSE 100 shed 1.06%, Germany's DAX ended 0.43% down, and France's CAC 40 edged down 0.13%, while Switzerland's SMI closed lower by 0.53%.

Among other markets in Europe, Austria, Belgium, Czech Republic, Greece, Iceland, Ireland, Netherlands, Norway, Portugal, Spain and Turkiye ended weak.

Denmark, Poland, Sweden edged down marginally. Russia ended sharply higher, while Finland settled flat.

In the UK market, Ocado Group, Legal & General, Hargreaves Lansdown, Harbour Energy, Aviva, Standard Chartered, Prudential, Ashtead Group, Croda International, Antofagasta, Natwest Group and Rio Tinto lost 2 to 5.3%.

Rentokil Initial, Haleon and Sainsbury (J) gained 1.3 to 1.8%. Imperial Brands, Unilever, Rolls-Royce Holdings and Compass Group also ended notably higher.

In Paris, STMicroElectronics, WorldLine, Veolia, BNP Paribas, Renault, Capgemini, Credit Agricole, Engie and ArcelorMittal shed 1 to 3.2%.

Air France-KLM climbed 2.3%, Sanofi gained about 2% and Carrefour surged nearly 2%. Valeo, Michelin, Vinci and Hermes International also posted notable gains.

In the German market, Brenntag plunged nearly 8%. BASF, Covestro, Symrise, Infineon Technologies, E.ON. HeidelbergCement, Deutsche Bank, Porsche Automobil, RWE and Sartorius lost 2 to 4%.

Qiagen rallied about 5%. Zalando, Fresenius Medical Care, Vonovia, Bayer, MTU Aero Engines, Daimler and Puma gained 1 to 3.2%.

Data from the Office for National Statistics showed the UK jobless rate eased unexpectedly to the lowest since 1974 and more people dropped out of workforce making it difficult for businesses to find employees to fill vacancies.

The jobless rate fell to 3.5% in three months to August from 3.6% in three months to July, the data showed. The unemployment rate was forecast to remain unchanged at 3.6%.