Europe midday: Shares extend losses as slowdown fears hit sentiment

European shares extended losses on Friday as the prospect of continuing rate rises to stymie inflation fuelled fears of slowdown and recession.

The pan-regional Stoxx 600 index was down 1.11% at 1150 GMT, with all major continental bourses lower.

In economic news, the fall in Eurozone business activity slowed in December, indicating that any recession in the single currency bloc coulkd be milder than expected, a survey showed on Friday.

The downturn in the eurozone was seen easing in December, helped by an improvement in economic conditions in Germany, according to S&P Global.

December's flash composite PMI cam in at 48.8 versus expectations of 48.0. The services PMI index was 49.1 against expectations of 48.5 and the manufacturing PMI came in at 47.8 against an expected 47.1.

In the UK, official data showed that retail sales unexpectedly fell last month, down 0.4% after a 0.9% increase in October, missing expectations for a 0.3% jump.

Sales in October had bounced back from the impact of the additional Bank Holiday in September for the Queen’s funeral.

Separately, a survey showed that consumer confidence remains at historic lows as the poor economic climate continues to weigh heavily

The latest GfK consumer confidence index was -42, up two points on November but still only seven points off September’s record low of -49.

In equity news, Tele2 fell 5% as Citigroup cut its price target on the telecom operator's stock.

Games Workshop surged after saying it had reached an agreement in principle with Amazon Content Services for Amazon to develop its intellectual property into film and television productions.

In a brief statement, Games Workshop said its intended that rights will initially be granted to develop the Warhammer 40,000 universe. The agreement will also see the company grant Amazon associated merchandising rights.

Bank stocks were up as the Federal Reserve, Bank of England and European Central Bank all raised interest rates.

Reporting by Frank Prenesti for Sharecast.com