European shares fall at open as recession risks weigh

(Reuters) – European shares fell on Friday, as recession warnings and bets of a large interest rate hike from the U.S. Federal Reserve next week knocked down sentiment.

The continent-wide index slid 1% moments after the opening bell, staring at declines of more than 2% for the week.

All major European sectoral indexes were lower, as of 0711 GMT, with travel & leisure leading the declines.

The World Bank said late on Thursday that the global economy might be inching toward a recession as central banks aggressively tackle sticky inflation, adding to concerns prevailing ahead of the Fed meeting next week.

The International Monetary Fund said it expected a slowdown in the third quarter, while warning that some countries were expected to slip into recession in 2023.

Ailing German gas importer Uniper SE (OTC:) tumbled 9.4% to the bottom of the STOXX 600, as it struggled to keep up with costs after the sudden stoppage of a major pipeline by Russia earlier in the month.

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