Europe Stocks Resume Declines as Global-Growth Worry Not Abated

European stocks fell, snapping a two-day rebound, amid renewed concern about global-growth prospects.

 

The Stoxx Europe 600 Index declined 1.5 percent at the close of trading. It pared a drop of as much as 3.3 percent as energy producers reversed losses, following oil prices higher. Europe’s benchmark has still tumbled 18 percent since an April high, inching closer to the common definition of a bear market.

Stocks are falling in 2016 on concern China’s slowdown may be worse than expected and as oil slumped further. A rally in Europe yesterday weakened heading into the close, signaling investors lack the conviction to drive a rebound after stocks’ worst-ever start to a year. Prospects for global profit growth are also worsening, with analysts cutting forecasts by the most since 2009, according to a Citigroup Inc. index.

 

Source: Bloomberg

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