UPDATE 2-European shares slide on risk-off mood after gloomy Fed view

  • Reuters
  • Stock Market News
UPDATE 2-European shares slide on risk-off mood after gloomy Fed view
Credit: © Reuters.

(For a live blog on European stocks, type LIVE/ in an Eikon news window)

* Fed minutes spark risk-off mood globally

* Hotel groups IHG, Accor surge on merger report

* Antofagasta slides after H1 profit slump (Updates to market close)

By Sruthi Shankar

Aug 20 (Reuters) - Miners and banks led declines in European stocks, hit by a wave of selling across global markets on Thursday after the U.S. Federal Reserve signalled a long path of recovery for the world's largest economy.

The pan-European STOXX 600 index .STOXX fell 1.1% to hit a 10-day low, with economically sensitive sectors such as miners .SXPP , banks .SX7P , automakers .SXAP and oil and gas .SXEP falling between 1.6% and 2.9%.

The Fed minutes showed that policymakers were doubtful of a quick economic rebound and may stick with aggressive stimulus measures for a much longer period, driving Wall Street indexes off their record highs. rise in U.S. weekly jobless claims to above 1 million also added to the downbeat sentiment. in Europe, worries over a pick-up in coronavirus cases kept investors on edge. Britain recorded its second-highest daily total of new virus cases since June 21, while Germany has also seen cases accelerating in recent weeks. impact of this (rise in COVID-19 cases) is not yet evident in the official economic data, but the high frequency figures show a clear flattening of activity – this will undoubtedly come through in the data," Derek Halpenny, head of research for global markets EMEA at MUFG, wrote in a note.

A preliminary survey of European purchasing managers is due to be released on Friday. The numbers are likely to show the pick-up in business activity stagnated in August after a rebound in July.

A full bounceback from the euro zone's deepest recession on record will take two years or more, a Reuters poll showed, with economists saying there is a high risk of the job recovery reversing by the end of 2020. individual stocks, Chilean miner Antofagasta ANTO.L fell 5.6% after it posted a 22.4% plunge in first-half core earnings on lower copper sales, but said it would pay an interim dividend. processor Adyen NV ADYEN.AS , which has doubled in value in the past year, slipped 2.7% as it reported slower earnings growth. Hotels Group IHG.L rose 0.9% and France's Accor ACCP.PA gained 2.3% after a French newspaper reported the hotel operators had examined a merger. real estate firm Tag Immobilien TEGG.DE jumped 6.9% as it confirmed its guidance for 2020 and said raising it during the year was a possibility.

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