European Shares Decline On Growth Concerns

European stocks traded at one-week low on Tuesday as weak data from China and the euro area fueled concerns about slowing global growth.

China’s services activity expanded at the slowest pace in eight months in August, a private-sector survey showed earlier today.

Business activity in the euro zone weakened further in August as the economic downturn extended from manufacturing to the services sector.

HCOB’s final Composite Purchasing Managers’ Index (PMI), compiled by S&P Global, dropped to 46.7 in August from July’s 48.6, marking the lowest level since November 2020.

Separately, an ECB survey showed consumer expectations for euro zone inflation three years ahead rose to 2.4 percent in July from 2.3 percent in June, above the ECB’s 2 percent target.

The U.K. services PMI dropped to 49.50 from 51.50 in July, marking the lowest reading since January.

Euro zone producer prices fell for a seventh consecutive month in July, possibly offering some comfort to the European Central Bank, which meets next week to decide on rates.

The pan European STOXX 600 was down 0.3 percent at 456.63 in its fifth consecutive session of losses.

The German DAX dropped 0.3 percent and France’s CAC 40 shed 0.6 percent while the U.K.’s FTSE 100 was marginally higher.

ABN AMRO fell about 1 percent after the Dutch Bank said it intends to appoint current interim Chief Financial Officer Ferdinand Vaandrager permanently.

Swedish builder Skanska rallied 3.3 percent after winning a $834 million contract for a highway improvement project in the U.S.

Celadon Pharma jumped 7 percent after the cannabis-based pharma firm signed a deal to sell its cannabis product with a second U.K. pharmaceutical company customer.

Headlam, a floorcoverings distributor, added 1.6 percent after reporting higher first-half revenue and backing its FY view.

Equipment rental firm Ashtead fell 2.5 percent after lowering its U.K. rental revenue outlook.

China-exposed luxury makers were losing ground in Paris, with LVMH and Hermes falling 1-2 percent.

Renault Group gained 1.3 percent. The initial public offering of Ampere electric vehicle division could get a valuation of up to 10 billion euros ($10.8 billion), CEO Luca de Meo said.

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