European shares fall as telecom, utilities drag amid recession worries

(Reuters) – European shares fell on Thursday, with utilities and telecom firms leading declines amid growing fears of an impending recession.

The region-wide was down 0.1% at 0815 a.m. GMT.

The index dropped for a fourth straight session on Wednesday on rising concerns over a slowdown in economic growth ahead of a slew of interest rate decisions from major central banks next week.

Among STOXX 600 sectors, telecom and utilities fell about 0.6% and 0.5%, respectively, in early trading.

Real estate stocks rose 0.7%, while energy shares gained 0.3% as oil prices rebounded after slumping to the lowest levels so far this year in the previous session on optimism over China’s easing of anti-COVID measures.

Ryanair said on Wednesday that Group Chief Executive Michael O’Leary had agreed to extend his contract to 2028. Shares of Europe’s largest airline were up 1.6%.

French automaker Renault (EPA:) fell 1.3%, as talks between Renault and Nissan (OTC:) Motor Co over alliance restructuring are certain to spill into next year, Bloomberg reported on Thursday.

British American Tobacco (NYSE:) said it expects full-year revenue growth between 2% and 4% at constant currency rates, as more people use its e-cigarettes and oral nicotine products. Shares of the tobacco firm, however, slipped about 2%.

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