European Shares Decline As Growth Fears Mount

European stocks fell on Tuesday amid growth worries, as a broad package of Chinese measures to support the economy underwhelmed investors and Snapchat parent Snap warned of deteriorating macroeconomic trends.

The pan European Stoxx 600 fell a little over 1 percent to 432.06 after climbing 1.3 percent on Monday.

The German DAX dropped 1.1 percent and France’s CAC 40 index shed 1.4 percent while the U.K.’s FTSE 100 was down about half a percent due to weakness in the pound.

The British pound fell to a more than one-week low against the euro after the latest PMI data signaled a severe slowing in economic activity in May, contrasting unfavorably with figures showing a continued robust growth for the Eurozone.

Sweden’s Tele2 slumped 7.6 percent after investment company Kinnevik sold a 7.2 percent stake in the telecoms operator. Shares of the latter were down 2 percent.

The risk around windfall tax on the power sector sent shares of power companies tumbling in London, with SSE, Centrica and Drax Group plunging 9-16 percent.

Renewi shares surged 7.6 percent. The company, which converts waste into secondary products, said full year revenues rose 10 percent while underlying earnings jumped 83 percent.

Greencore Group, a manufacturer of convenience food, jumped nearly 6 percent. The company reported first-half profit before tax of 1 million pounds, compared to last year’s loss of 1.8 million pounds.

Lender Barclays gained nearly 2 percent after launching a 1-billion-pound share buy-back program.

Norwegian advertising firm Adevinta rose over 2 percent after reporting solid Q1 financial results.

Source: Read Full Article