Recession fears hit European shares; Sino-U.S. tensions weigh
2022.08.02 10:42
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, August 1, 2022. REUTERS/Staff
(Reuters) – European shares fell on Tuesday as weak global factory data fanned economic slowdown fears, while markets were on edge as U.S. House of Representatives Speaker Nancy Pelosi was expected to visit Taiwan.
The pan-European STOXX 600 slid 0.6% at 7:08 GMT.
Pelosi was set to visit Taiwan on Tuesday, three sources said, as the United States said it wouldn’t be intimidated by Chinese threats to never “sit idly by” if she made the trip to the self-ruled island claimed by Beijing.
Global markets were jittery, with MSCI’s broadest index of Asia-Pacific shares ex-Japan down 1.4%, while U.S. futures pointed to a lower open.
European stocks ended lower in the previous session as energy shares fell following a drop in crude prices after weak factory data across the United States, Europe and Asia rekindled demand concerns.
Europe’s energy sector was boosted by strong results from BP (NYSE:BP), with the London-listed oil major up 3.1% as it reported a second-quarter profit that beat estimates.
