European shares begin trading in the fourth quarter of 2022 with a decline

European shares fell on Monday as investors awaited factory activity data for clues to the resilience of the eurozone economy after last week’s sharp inflation report boosted expectations that the European Central Bank will raise interest rates aggressively.

The pan-European Stoxx 600 index fell 1.3 percent by 0713 GMT, marking a weak start to the fourth quarter of the year, tracking the jittery Wall Street session on Friday.

The index has fallen 21.5 percent since the start of the year, as risk appetite waned after the outbreak of the Russia-Ukraine war earlier in the year that rocked the region and sent gas prices soaring, driving up inflation and raising fears of a central bank-led recession.

Except for the oil and gas sector, which rose 0.9 percent thanks to a jump in crude prices, all sectors’ indices fell on the Stoxx 600.

The FTSE index in London outperformed its peers in the region after the British government backed away from plans to cut the highest income tax rate that, caused turmoil in financial markets.

According to a survey, data later on Monday is expected to show manufacturing activity in the eurozone contracted for the third consecutive month in September.

Credit Suisse shares fell 9.7 percent after several reports at the weekend, including a Financial Times report that Swiss bank executives spent the weekend reassuring big clients and investors about liquidity and capital position.