Europe midday: Shares lower on slowdown fears, ECB meeting
European stocks opened lower again on Thursday, as fears over a slowdown in global growth added to jitters ahead of the European Central Bank’s meeting to discuss asset tapering.
The pan-European Stoxx 600 index was down 0.51%. The UK’s FTSE 100 was down 1.23% and Germany’s DAX 0.3%.
The ECB is expected to slow its bond buying through its Pandemic Emergency Purchase Programme, but also reassure markets that this is not the start of a gradual exit from easy policy.
Asian shares fell as Chinese gaming stocks came under pressure from fresh regulatory scrutiny, while data showed China’s factory gate inflation hit a 13-year high in August.
"Pre-ECB nerves are firmly in evidence in European stock markets this morning, although it is the FTSE 100’s turn to be at the head of the declines after following in the wake of its continental brethren yesterday," said IG analyst Chris Beauchamp.
"Should the central bank opt not to taper asset purchases, it could provide the respite risk assets are looking for, and would certainly help reverse the negative sentiment of the past few days; comments from Fed speakers such as Kaplan about continuing with a US taper despite last week’s poor NFP print have also set the cat among the pigeons, and while US futures are edging up the note of caution in early European trading is likely to carry across into the afternoon."
In equity news, British budget airline easyJet slumped 9% after it revealed plans to raise £1.2bn and said it had rejected a takeover offer.
Animal genetics company Genus fell to the bottom of the Stoxx with a fall of 10% as it warned that recent volatility in the Chinese porcine market will dent growth.
Assa Abloy jumped 6.4% after US lock maker Spectrum Brands said it would sell its hardware and home improvement division to the Swedish rival for $4.3bn in cash.
The firm reported a jump in full-year profit and revenue as it continued to win new customers.