European stocks fall as US slowdown fears weigh on markets

(MENAFN) European stock markets experienced a significant decline at the open on Wednesday, driven by concerns over a potential economic slowdown in the United States and heightened global market jitters. The pan-European STOXX 600 index dropped by 1 percent by 0710 GMT, with major European markets similarly falling by around 1 percent. This downward trend followed a sharp sell-off on Wall Street, where all major indexes posted their largest daily percentage losses since early August, largely due to disappointing manufacturing data that dampened investor sentiment.

In early trading, semiconductor companies were hit hardest, with ASML Holdings experiencing a 5.3 percent decline following a notable drop in Nvidia's stock the previous day. Additionally, shares of the British housebuilder Barratt fell by 1.4 percent after it reported a 56 percent drop in annual profit and noted that housing demand is heavily influenced by borrowers' ability to manage mortgage payments.

Investors are closely monitoring upcoming economic data from the euro zone, including the euro zone services PMI report due at 0800 GMT and the July producer price index set for release at 0900 GMT. Additionally, services PMI data from Germany, Spain, Italy, and France are expected later in the day, which could provide further insights into the economic health of the region and inform expectations for future interest rate decisions. 

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