Leading stocks in the eurozone fell on Wednesday, with tech stocks under pressure ahead of the release of the U.S. Federal Reserve's monetary policy meeting minutes from June. Weak data from the eurozone and China heightened concerns about a significant impact on global growth.
The Euro Stoxx 50 index closed down 0.9 percent, marking its worst performance since the end of May, while the broader Stoxx 600 index fell 0.7 percent.
A private sector survey showed that China’s services sector grew at its slowest pace in five months in June, adding to a series of data indicating weakness in the world’s second-largest economy post-pandemic. Sentiment was also negatively impacted by data showing that business activity in the eurozone is entering a contraction phase. Additionally, the services sector in major European economies was affected, with France's dominant services sector declining in June for the first time since January.
The mining sector index dropped 1.1 percent, as metal prices were impacted by concerns over global growth, while shares of luxury goods company LVMH, the largest European company by market value, fell by 1.1 percent.
Citi Group lowered its economic growth forecasts for the eurozone in 2023, attributing this to pressures from rising interest rates, which the European Central Bank indicated may be increased further.
The U.S. Federal Reserve is expected to release the minutes of its latest monetary policy meeting later on Wednesday, during which it kept interest rates unchanged but indicated the possibility of future hikes.
Tech stocks fell by 1.4 percent, with Swiss sensor manufacturer AMS Osram plunging 13.5 percent, marking its worst daily performance since February, due to concerns about its supply chain being affected by Chinese export restrictions on gallium.
