European Stocks Close Lower As Growth Worries Weigh

(RTTNews) - European stocks closed lower on Friday amid concerns about slowing economic growth, soaring inflation and prospects of more interest rate hikes by central banks in the coming months.

Data from Destatis showed Germany's producer price inflation accelerated unexpectedly to a new record high in July, primarily driven by energy costs.

Producer prices grew 37.2% year-over-year in July, well above the 32.7% surge in June, Destatis reported.

The upward trend in July was largely caused by a 105% jump in energy prices amid soaring natural gas and electricity costs.

Elsewhere, U.K. retail sales unexpectedly recovered in July while consumer sentiment hit a new record low in August amid the deepening cost of living crisis caused by rising inflation and the bleak economic prospects, separate data revealed.

The pan European Stoxx 600 fell 0.77%. Germany's DAX drifted down 1.12% and France's CAC 40 tumbled 0.94%, while the U.K.'s FTSE 100 edged up 0.11%. Switzerland's SMI ended 0.1% down.

Among other markets in Europe, Austria, Belgium, Czech Republic, Finland, Ireland, Netherlands, Poland, Spain and Sweden closed weak.

Denmark, Greece and Norway ended higher, while Iceland, Portugal, Russia and Turkiye ended flat.

In the UK market, IAG ended more than 5% down. Persimmon, Entain, Howden Joinery, Segro, Antogasta, Kingfisher and ICP lost 3 to 4.1%.

Reckitt Benckiser climbed nearly 2.5%. AstraZeneca Pharma, Avast, Unilever, GSK, Diageo, Shell, BP, Auto Trader Group and Amiral Group gained 1 to 2%.

In Paris, Air France-KLM dropped more than 5%. ArcelorMittal ended nearly 5% down. Faurecia, Valeo, Renault, Unibail Rodamco, Societe Generale, BNP Paribas, Accor, Atos, Airbus Group and Credit Agricole lost 2 to 3.25%.

In the German market, Deutsche Bank, Daimler, Vonovia, Porsche Automobil, Continental, BMW, Volkswagen and Infineon Technologies declined sharply.