European shares open lower as mining and energy stocks decline

European shares opened lower on Wednesday as mining and energy companies led the losses as investors remained concerned about the outlook for demand in the wake of weak trade data from China.

The European oil and gas index was down 2.2 percent by 0720 GMT, while the mining index lost 2.3 percent.

Both sub-indices led a general decline in the pan-European Stoxx 600 index, which fell 0.9 percent after achieving marginal gains in the previous session.

Data from China showed a slowdown in exports and imports in August, with the economy recording growth largely below expectations, in light of high inflation causing a decline in demand abroad, in addition to the negative impact of new Covid-19 restrictions and heat waves on production.

European markets were also widely affected by fears of an energy crisis amid rising prices and the shutdown of Russia’s largest natural gas pipeline to the region.