European stocks open lower amid fears China’s economy fears

European stocks opened today, Friday, with a decline and are on their way to record a weekly loss, as risk appetite was negatively affected by fears related to interest rates remaining globally high for a longer period, as well as concerns about the growth of the Chinese economy.

By 0703 GMT, the European Stoxx 600 index fell 0.5 percent and is on its way to recording the fourth consecutive day of losses if it continues down for the end of trading.

According to “Reuters”, the rise in bond yields also pressured stocks this week, prompting the Stoxx 600 index to record a weekly decline that could reach 2 percent.

The Chinese economy is another factor that preoccupies investors, as economic data and problems faced by the Chinese real estate sector showed the extent of the faltering recovery there after the pandemic.

Shares of major luxury goods companies with strong exposure to China, such as LVMH, Kering and Ermis, declined by rates ranging between 0.6 percent and 1.2 percent due to growing concerns about the impact of weak economic growth in China, the world’s second largest economy.

Shares of European mining companies, which are also exposed to China, fell 1.1 percent in early trading

The FTSE index fell 0.6 percent after data showed that British retail sales fell more than expected in July.