European stocks fall on recession fears

European shares fell on Friday, heading towards a weekly loss, due to fears that tightening monetary policies, inflationary pressures and an energy crisis will push the global economy into a recession.

European Stoxx 600 index fell 0.3% by 0721 GMT. The shares of the travel sector companies led the declines, Reuters reported.

Among the stocks that witnessed the biggest decline, the French company Sodexo for catering services, which fell by 1.9%.

The index is expected to end the week down by 0.3%, as gains in commodity and oil-related stocks, mining and food and beverage stocks were offset by losses in the real estate and retail sectors.

Shares of FLS Midth jumped 7.3% after the company raised its annual sales forecast, as the cement and mining equipment maker beat earnings forecasts in the second quarter.

German producer prices in July saw their highest ever increase on an annual and monthly basis as energy costs rose due to the war in Ukraine. The German DAX index fell 0.3%.