European shares sink as recession risk fears hit home

  • Reuters
  • Stock Market News
European shares sink as recession risk fears hit home
Credit: © Reuters.

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March 25 (Reuters) - European shares opened deep in the red on Monday, adding to the worst weekly fall of the year last week after disappointing economic data in Europe and the United States stoked fears of recession.

The pan-European STOXX 600 index .STOXX fell 0.6 percent, extending three days of declines, with France's CAC 40 .FCHI leading losses with an almost 1 percent initial fall before steadying.

Germany's DAX .GDAXI , hammered on Friday by a manufacturing sector survey which pointed to the risk of outright recession in the continent's biggest economy, fell 0.3 percent as investors ditched equities and switched into safe-haven assets.

London's FTSE .FTSE fell 0.5 percent.

Investors are also dealing with the uncertainty surrounding the United Kingdom's exit from the European Union, with the risk of a potentially major "no-deal" shock to the European economy still only just over two weeks away.

Prime Minister Theresa May is under pressure to give a date for leaving office as the price to swing Brexit-supporting rebel lawmakers in her party behind her twice-defeated European Union divorce treaty. assets were dumped worldwide after dour surveys in the U.S. and euro zone on Friday sent benchmark U.S. 10-year interest rates S10YT=RR below three-month rates US3MT=RR for the first time since 2007, an inversion that has in the past signaled an upcoming recession. US/

Among those leading losses was Germany's Bayer BAYGn.DE , down 2.6 percent. Over the weekend its chief executive said management retained the backing of its supervisory board despite a second U.S. ruling that is glyphosate-based Roundup weed killer caused cancer. satellite operator Inmarsat ISA.L by contrast jumped 7.5 percent to lead gains on the main European index after a private equity-led consortium agreed to buy the company for about $3.4 billion in cash. elsewhere were broad-based, led by a roughly 1 percent decline in each of the technology .SX8P , retail .SXRP and industrial goods and services .SXNP sectors.

Sanofi SASY.PA fell 0.4 percent after the U.S. FDA declined to approve a drug developed with Lexicon Pharmaceuticals for use with insulin in patients with type 1 diabetes. goods maker Hermes International HRMS.PA fell more than 3 percent before steadying after a Credit Suisse (SIX: CSGN ) rating downgrade to neutral added to the bleak mood.

PSA PEUP.PA , up last week on merger speculation, lost 1 percent after The Wall Street Journal reported that Fiat Chrysler FCHA.MI had rebuffed approaches earlier this year.

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