European Shares Fall On Economic Recovery Concerns

European stocks fell in cautious trade on Tuesday amid concerns that the economic recovery in the U.S. may be “leveling off” amid a recent surge in coronavirus infections.

U.S. Federal Reserve official Raphael Bostic told the Financial Times in an interview that there are signs that the American recovery is “levelling off”.

The pan European Stoxx 600 dropped 1.1 percent to 367.24 after climbing 1.6 percent in the previous session.

The German DAX gave up 1.4 percent, France’s CAC 40 index declined 1.2 percent and the U.K.’s FTSE 100 was down 1.3 percent.

HeidelbergCement lost about 1 percent. The building materials company said that it will record a 3.4 billion euros of asset impairment in the second quarter, due to Brexit and the impact of the coronavirus pandemic on its business.

French catering and food services group Sodexo plunged 5.6 percent. The company warned that its fourth-quarter and half-year sales will fall more sharply than previously expected.

Geoscience technology company CGG fell 1.5 percent. The company announced that Sercel has acquired a 34 percent shareholding in start-up AMBPR.

Telecommunications operator Orange SA was down 1.7 percent after announcing the appointment of Julien Ducarroz as CEO of Orange Polska, and Xavier Pichon as CEO of Orange Belgium.

BP Plc fell over 1 percent and Royal Dutch Shell shed 0.6 percent as oil prices slid on concerns over a recovery in fuel demand.

Micro Focus International plunged 8.7 percent. The technology company swung to a loss after writing off $922 million because of Covid-19 uncertainty.

Whitbread tumbled 4.2 percent after the hotel and restaurant group unveiled a significant slump in first-quarter sales.

Derwent London lost 2.5 percent. The property investment and development company said that for the June quarter so far it had collected 75 percent of office rents due and 70 percent from the portfolio in its entirety.

Ferrexpo, a Swiss iron ore company with assets in Ukraine, was little changed after reporting an increase in its first-half pellet production.

In economic releases, German industrial production recovered in May, helped by an easing of lockdown measures, Destatis reported.

Industrial output grew 7.8 percent on a monthly basis in May, in contrast to a revised 17.5 percent fall in April. Production was forecast to grow 10 percent in May.

On a yearly basis, industrial production declined 19.3 percent versus a revised 25 percent decrease in April.

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