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European shares fall as recession risks rise


European stocks fell on Thursday as the Bank of England intervened in bonds markets began to disappear, and Sweden’s coast guard discovered a fourth gas leak on the damaged Nord Stream pipelines, raising concerns about energy security.

The British pound resumed its slide, gaining in two days as Prime Minister Liz Truss doubled down on her plans for tax and debt cuts.

In economic releases, the indicator of economic sentiment in the euro area worsened again in September, the European Commission said.

The corresponding index is an aggregate measure business and consumer confidence fell to 93.7 from 97.3 in August, the lowest reading since November 2020, driven by high inflation and a worsening economic outlook.

Inflation data in Germany is expected on the same day.

The pan-European Stoxx 600 index fell 1.3% to 384.41 after rising 0.3% on Wednesday.

Germany’s DAX fell 1.2 percent, France’s CAC 40 fell 1.4 percent and Britain’s FTSE 100 fell 1.1 percent.

H&M, the world’s No. 2 fashion clothing retailer, lost 3 percent after posting dismal third-quarter earnings hit by a sharp rise in costs, a slowdown in consumer spending and an exit from Russia.

Shares in Next Plc fell 8.4 percent in London after the clothing retailer issued its second profit warning this year, citing tough trading in August and pressure on the cost of living.

Avon Protection, a maker of safety and security products, jumped nearly 7 percent.

The company received its first $42.1 million supply order from the U.S. Army under the Next Generation Integrated Head Protection System, or NG IHPS, helmet contract.

German auto parts supplier HELLA fell 2.7 percent after posting a decline in first-quarter earnings before interest and taxes due to higher costs, particularly on materials, energy and logistics, as well as higher capital spending.

Rational AG rose more than 15 percent after raising sales revenue and a profit forecast for 2022.

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