European Stocks Close Lower On Growth Worries

(RTTNews) - European stocks closed lower on Thursday as worries about recession and interest rate hikes returned to haunt sentiment, outweighing optimism about earnings.

The pan European Stoxx 600 slid 0.97%. The U.K.'s FTSE 100 ended 0.37% down, Germany's DAX dropped 1.3% and France's CAC 40 fell 0.95%, while Switzerland's SMI drifted down 0.65%.

Among other markets in Europe, Belgium, Finland, Ireland, Netherlands, Norway, Poland, Spain and Sweden ended weak.

Czech Republic, Denmark, Iceland, Russia and Turkiye closed higher, while Austria, Greece and Portugal settled flat.

In the UK market, Ocado Group ended 3.4% down. United Utilities, ABRDN, Halma, Weir Group, Pershing Square Holdings, Scottish Mortgage and Schroders closed lower by 2 to 3%.

In Paris, Renault, STMicroElectronics, Stellantis, Schneider Electric, Hermes International and Legrand lost 2 to 4%.

In the German market, Volkswagen, HelloFresh, Infineon Technologies, Porsche Automobil, Zalando, Continental, Daimler, MTU Aero Engines, Deutsche Post, Symrise, Fresenius Medical Care and BASF declined 1.7 to 4.5%.

In economic news, UK economy contracted more than initially estimated in the third quarter, due to the downward revisions to industrial and construction output.

The decline in gross domestic product was revised to -0.3% from -0.2%, latest data from the Office for National Statistics showed.

Slowdown in the UK private sector is set to deepen going into the next year, the Confederation of British Industry said. The CBI growth indicator fell to -13% from -7% in November. Private sector activity has fallen for five consecutive rolling quarters.

Private sector activity is expected to fall at a faster pace in the next three months due to quicker declines in business and professional services and distribution. The balance for the next three months fell to -22%.