European equities add to losses linked to growth fears
(Reuters) – European stocks struggled on Monday after their worst weekly performance since February, dampened by a growing number of risks, including signs of inflation, high bond yields and China Evergrande’s financial woes.
The pan-European STOXX 600 index slipped 0.2% at 07:18 GMT, holding close to a two-month low hit during last week’s sell-off.
Banks, automakers and luxury stocks were the main pullbacks over fears of slowing global growth as the world’s second-largest economy faces new COVID-19 restrictions, a slowdown in the real estate sector and measures regulatory repression.
French luxury goods Kering and LVMH, which derive a large part of their turnover from China, fell by 1.9% and 1.5% respectively.
Morrisons fell 3.8% after US private equity firm Clayton, Dubilier & Rice (CD&R) won the auction for the UK supermarket group with a bid of Â£ 7bn (Â£ 9.5bn) dollars).
Rivals Tesco and Sainsbury have moved closer.
British telecommunications group BT Group and Nordea Bank were the main losers of the STOXX 600, down by more than 6% each.
Reporting by Sruthi Shankar in Bengaluru; Editing by Saumyadeb Chakrabarty