European Stocks Back in the Red as Global Growth Woes Resurface
The European stocks snapped the previous rebound and fell into losses this Wednesday as worries over Brexit aggravated, while global growth concerns returned to markets and dampened the investors’ sentiments.
On late-Tuesday, the World Bank cut its outlook for global growth, citing, downside risks have become more pronounced since the start of the year. The region’s indices were dragged lower by heavy losses in the banking stocks after the German yields dropped to record lows in wake of mounting uncertainties related to Brexit.
Moreover, markets ignored upbeat industrial figures from the British economy, which showed that the manufacturing output rose 2.3% in April versus a 0.1% increase seen in March, while total industrial output expanded 2% m/m, after climbing 0.3% in March. Markets had predicted no growth for both the readings in April.
Meanwhile, Germany's DAX 30 index drops -0.44% to 10, 2450 points, the UK’s FTSE trades modestly flat at 6,288. Among the other indices, the French CAC 40 index declines -0.37% to 4,459 levels, while the pan-European Euro Stoxx 50 index slides -0.54% to 3,026 points.