European stocks fall as oil, metal prices extend losses
European shares fell on Thursday, dragged down by energy and mining stocks due to sliding commodity prices on worries about slowing economic growth, with several broker calls also spurring big moves in stocks.
The continent-wide STOXX 600 index .STOXX dropped 1.1% by 0724 GMT, with oil & gas stocks .SXEP slipping 1.8% as crude prices fell almost 2%.
Miners .SXPP shed 2.2% as copper and other metals extended recent declines on growing fears about a recession.MET/L
Asian stocks struggled and Wall Street ended lower overnight, after Federal Reserve Chair Jerome Powell said the U.S. central bank is “strongly committed” to bringing down inflation and policymakers are not trying to cause a recession in the process.
Investors are awaiting flash readings of euro zone and UK business activity for June due later in the day to gauge the economic toll from soaring inflation and supply-chain issues.
German real estate group Aroundtown AT1.DE tanked almost 10%, after J.P. Morgan downgraded the stock to “underweight”, while Rio Tinto RIO.L dropped 1.4% as Morgan Stanley cut rating to “equal-weight”.
Source: Reuters (Reporting by Sruthi Shankar in Bengaluru; Editing by Rashmi Aich)