European stocks caught in global selloff on recovery concerns

Miners, carmakers lead early declines

Photograph: iStock

Photograph: iStock

 

European stocks fell on Thursday, with cyclical stocks such as miners, carmakers, and banks leading early declines, as global mood soured on economic recovery worries.

The pan-European Stoxx 600 index dropped 0.7 per cent by 0711 GMT after Asian markets tumbled on concerns about China’s recovery and tighter regulation on technology companies.

In Europe, interest rate-sensitive banking shares fell as government bond yields extended their decline. An index of the euro zone banks was down 1.5 per cent as falling rates hurt profit margins.

Miners and carmakers also fell more than 1 per cent.

German automotive lighting group Hella slipped 1.5 per cent after brakes maker Knorr-Bremse dropped plans to acquire a 60 per cent stake in the company. Knorr-Bremse shares jumped 8.5 per cent.

Remote connectivity software specialist Teamviewer tumbled 9.4 per cent on reporting weaker-than-expected billings growth in the second quarter.

In the UK, Deliveroo rose 2.3 per cent after it posted 88 per cent jump in orders during the June quarter.– Reuters