European Shares Drop on Recovery Outlook

European shares were hit by a sell-off in global stock markets on Thursday (August 20th) after the US Federal Reserve indicated a long and difficult path to the recovery of the world’s largest economy.

The Stoxx600 index of European shares fell 1.2% by 07:12 GMT, while the mining sector fell 2.7% due to the fall in the prices of basic metals.

Other sectors severely affected by the economy, such as banks, automakers, and oil and gas companies fell between 1.6% and 1.9%.

Chilean Mining Antofagasta plunged 4.3% after the company posted a 22.4% drop in core profits for the first half due to lower copper sales, but said it would provide temporary dividends.

Among the notable gainers, InterContinental Hotels Group jumped 2.6% and French Accor gained 2% after a French newspaper reported that the hotel operator was considering a merger.