Europe open: Shares lower on weak China data; Eyes on Fed minutes

European shares opened lower on Wednesday as yet another survey showed the Chinese economic recovery was losing steam and investors eyed the released of minutes from the US Federal Reserve.

The pan-European Stoxx 600 was down 0.61% with regional bourses all lower. China's services activity expanded at the slowest pace in five months in June, the Caixin a private-sector survey showed, as weakening demand dragged on the post-pandemic recovery. The news hit Asian shares with Hong Kong down 1.5% and Shanghai 0.68%.

Elsewhere in China, tensions with the US over export controls on metals used in making semiconductors were ratcheted up a notch as a trade policy adviser said the move was "just a start”, days before US Treasury Secretary Janet Yellen visits Beijing.

‘’There are fresh concerns about the global economy powering down as data from China’s service sector underlines how tepid the post-pandemic recovery has become, just as trade tensions between Beijing and Washington ramp up. This has put indices in Europe on the back foot, following falls in Asia,” said Hargreaves Lansdown analyst Susannah Streeter.

In equity news, cash-strapped French retailer Casino said Czech billionaire Daniel Kretinsky is leading a €1.35bn rescue plan, which could satisfy the chain's target of raising €900m in new equity.

Reporting by Frank Prenesti for Sharecast.com