European stocks plunge to near six-month low amid US recession jitters

Posted by Admin August 5, 2024 World

Reuters | | Posted by Aditi Srivastava

Aug 05, 2024 01:03 PM IST

The index experienced its most severe week in nearly nine months on Friday, plummeting below the 500-point threshold for the first time since April 15.

European shares tumbled to a near six-month low at the start of the week amid a global sell-off in equities on fears of a slowdown in U.S. economic growth.

(FILES) This file photo taken on April 22, 2022 shows pounds and US dollar banknotes displayed on a table in London. -(AFP)

The pan-European STOXX 600 index was down 3.1% to 482.42 points by 0711 GMT, hitting its lowest since Feb. 13. The benchmark is also set for its worst day in 2-1/2 years.

The index saw its worst week in nearly 10 months on Friday and fell below the 500-mark for the first time since April 15.

Fears that the U.S. could be heading towards a recession have sent investors dashing away from risk assets.

All major European bourses opened in the red

Financial sectors were hit the most on the day. Banks lost 4.2%, financials services shed 3.6% while and the tech sector slipped 5%.

Among individual stocks, Galderma gained 2.2% after L’Oreal said it would acquire a 10% stake in the Swiss skincare firm from a group of major shareholders.

OCI Global jumped 7.3% after Woodside Energy said it would acquire the Dutch chemicals maker’s clean ammonia project in Texas for $2.35 billion.