European Stocks Losing Ground Again As Recession Fears Weigh On Sentiment

(RTTNews) - European stocks are sliding on Friday, posting sharp losses for a second straight session, as rising fears of a recession following the latest rate hikes by global central banks and the hawkish tone of the Federal Reserve and a few other banks weigh on sentiment.

Investors are also reacting to the latest batch of economic data from Europe, and closely following Covid - related reports from China.

In the UK market, Segro, Unite Group, Bunzl, Land Securities, British Land Co., ICP, Schrodders, Rolls-Royce Holdings, Persimmon, AstraZeneca Pharma and Experian are down 2 to 4%. Standard Chartered shares are gaining about 1.5%. Natwest Group is up nearly 0.5%.

In the French market, Eurofins Scientific, Unibail Rodamco and Teleperformance are down more than 3%.

Carrefour, Alstom, Saint Gobain, ArcelorMittal, Essilor, Kering, Dassault Systemes and LVMH are lower by 2 to 2.8%.

In the German market, Sartorius, Deutsche Wohnen, Vonovia, Bayer, Brenntage, Merck and Symerise are down 2 to 4.3%.

Infineon Technologies, E.ON, RWE, Fresenius Medical Care, Continental, SAP and HeidelbergCement are also notably lower.

The pan European Stoxx 600 is down 1.1%, The U.K.'s FTSE 100 is drifting down 1.21%, Germany's DAX is lower by 0.77% and France's CAC 40 is declining 1.25%, while Switzerland's SMI is down 0.8%.

In economic news, data from the Office for National Statistics showed UK retail sales declined unexpectedly in November, falling 0.4% from a month earlier, as the rising cost of living and weak consumer sentiment dragged down consumer spending. Sales were expected to rise by 0.3% in November, after increasing by an upwardly revised 0.9% in October.

France's private sector contracted for the second consecutive month, ending the year at the weakest pace in nearly two years, flash survey results from S&P Global showed on Friday.

The composite output index unexpectedly fell to 48.0 in December from 48.7 a month ago. The score was forecast to rise to 48.9.At 48.1, the flash services Purchasing Managers' Index was down from 49.3 in November and also below economists' forecast of 49.1. The manufacturing PMI improved to 48.9 from 48.3. The expected score was 48.2.

Germany's flash composite output index rose to 48.9 in December from 46.3 in November. The index was forecast to rise slightly to 46.5.

The services Purchasing Managers' Index climbed to a 5-month high of 49.0 in December from 46.1 in the prior month. The score was forecast to increase to 46.3. The manufacturing PMI rose to a 3 -month high of 47.4 in December from 46.2 in November. The expected score was 46.3.

Final data from Eurostat showed Eurozone inflation slowed for the first time since the middle of 2021, easing to 10.1% in November from 10.6% in October. However, inflation was slightly above the flash estimate of 10%.