European Shares Slide On Growth Worries

European stocks hovered near one-week lows on Tuesday, as a climb in Treasury yields, surging oil prices and weak industrial profits data from China stoked worries about the economic recovery.

Goldman Sachs has cut its forecasts for China’s economic growth in 2021 as constraints on energy consumption added to headwinds facing the world’s second-largest economy.

The pan-European STOXX 600 index was down 1.1 percent at 457.33, extending losses for a third session on concerns over the impact from the debt crisis at China Evergrande Group and Federal Reserve tapering.

A surge in government bond yields knocked high-growth technology shares. ASML Holding slumped 5 percent, Logitech plunged 7 percent and ASM International tumbled 4 percent.

Swedish real estate company Castellum AB declined 2.2 percent on news it is selling 16 properties to Oscar Properties for sale price of around 1.7 billion Swedish kronor.

Finnish national flag carrier Finnair lost 2.2 percent after announcing it has finalized a sale and leaseback arrangement for four of its Airbus A350 aircraft.

TotalEnergies rose over 1 percent, BP Plc rallied 2.1 percent and Royal Dutch Shell jumped 2.8 percent as oil prices climbed for the sixth day running on supply concerns.

Utility National Grid dropped 1.3 percent after it filed a three-year rate proposal for its upstate New York electric and natural gas distribution business.

Merchant banking group Close Brothers declined 1.7 percent despite reporting a rise in fiscal 2021 net profit.

Sanofi rose about 1 percent in Paris. The drug major announced positive interim results from a Phase 1/2 study of its mRNA-based COVID-19 vaccine candidate.

In economic releases, Germany’s forward-looking consumer confidence index rose to +0.3 points from -1.1 in September, survey results from the market research group GfK showed.

The score was forecast to fall further to -1.5. GfK said the consumer climate has reached its highest level in almost a year and a half.

French consumer sentiment index rose more-than-expected to 102 in September from 99 in August, survey results from the statistical office Insee revealed. The reading was forecast to rise to 100. The latest score was the highest since May.

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