European Shares Set For Worst Week in 6 Months on Virus And Growth Fears

European shares halted their decline today, but their main index is still on track to record the worst week since February, due to signs of slowing growth, rising Covid-19 infections, and fears of reducing monetary stimulus earlier than expected.

The pan-European Stoxx 600 index rose 0.1 percent, after falling 1.5 percent in the previous session, on indications that the US Federal Reserve may start curbing its accommodative policies later this year.

The mining sector index recovered from a 4 percent decline on Thursday, as copper prices stabilized, but it is still heading towards recording the worst performance among European sectors for the week.

Luxury goods stocks are also heading for a weekly decline of about 6 percent, as they are under pressure due to concern about possible developments related to the policy towards wealth in China.

Germany’s DAX index fell 0.2 percent as data showed that producer prices jumped more than expected last month.