European shares touch two-month low after weak Chinese ‎data

European stocks touched a two-month low on Wednesday after weak economic data from China fueled fears of a global slowdown and dashed optimism from signs of declining inflation in some major euro zone economies.

According to “Reuters”, the European Stoxx 600 index fell 0.7 percent, to its lowest level since March 31.

The main stock exchanges in the region are heading towards recording monthly losses, and the Financial Times 100 index on the London Stock Exchange (LON: LSEG) and the CAC 40 index on the Paris Stock Exchange were among the most affected indices. The two indices fell to their lowest level in two months also today, Wednesday.

The index of auto manufacturers and the index of industrial goods and services, both of which are affected by what is happening in China, led the losses of sub-indices in Europe after data showed that factory activity in the Asian country contracted more than expected in May due to weak demand. China is Germany’s main trading partner

In contrast to the pessimistic data, figures showed that the inflation rate in France fell more than expected in May, and price pressures eased in the German state of North Rhine-Westphalia this month.

Shares of troubled Swedish real estate company SBB fell 7.6 percent, hitting their lowest level in seven years.