European Shares Retreat As Growth Worries Return To Haunt

(RTTNews) - European stocks fell on Wednesday after two sessions of strong gains.

Recession woes returned to the fore after a survey showed Euro zone business activity fell more than expected last month, increasing the likelihood of a recession in the 19-member common currency bloc.

S&P Global's final composite PMI for the region fell to a 20-month low of 48.1 in September from 48.9 in August, short of a preliminary estimate of 48.2.

Elsewhere in the U.K., the seasonally adjusted composite PMI slipped to 49.1 in September from 49.6 in August.

Euro zone bond yields rose, and the dollar rebounded as hawkish commentary from the Reserve Bank of New Zealand suggested that fighting inflation is still a priority for many central banks.

The pan European Stoxx 600 was down 0.8 percent at 399.70 after rallying 3.1 percent on Tuesday.

The German DAX and France's CAC 40 both fell around 0.8 percent, while the U.K.'s FTSE 100 was down 1.2 percent.

LafargeHolcim was down 0.8 percent. The Swiss maker of building materials said it has completed the acquisition of Izolbet, a Polish specialty building solutions provider.

Arcadis NV declined 2.4 percent. The company has agreed to acquire DPS Group, a consultancy, engineering and construction management company for Life Sciences and Semiconductor facilities, for a cash consideration of 232 million euros.

SAS AB gained 3.3 percent. The Scandinavian airline said it had made changes to contracts with 10 lessors representing 36 jets, which would help it save nearly $700 million per year by 2026.

Tesco fell 2.7 percent. The British grocery chain predicted full-year profits at the lower end of its target range amid lingering "uncertainties" in the trading environment due to cost inflation.

Vertu Motors jumped 8 percent after posting higher revenue in its interim results for H1 2022.

Halfords rallied 3.6 percent after it agreed to acquire Lodge tyre for up to £37.2m in cash.

STMicroelectronics NV rose 1 percent in Paris. The European Commission has approved, under EU State aid rules, a 292.5 million euros Italian measure to support the semiconductor manufacturer in the construction of a plant in the semiconductor value chain in Catania, Sicily.