European shares fall as China stimulus rally fades

European shares opened lower on Wednesday as a rally driven by China’s stimulus package ran out of steam, with technology and oil stocks falling.

The pan-European STOXX 600 index fell 0.3% to 518.06 points, after rising nearly 1% in the previous session.

France’s CAC 40 fell 0.7%, after rising more than 1% in the previous session. The oil and gas sector led the decline in sub-sectors, falling 0.9% on concerns that China’s stimulus plans were not enough to boost demand.

Official data showed that Sweden’s producer price index rose 0.6% in August from July.