European Shares Fall 1% Amid Fears of Global Growth

European shares fell 1% to their lowest level in nearly two months on Monday, September 20, tracking the impact of the decline in Asian shares, as investors fear that major central banks will begin to express indications about reducing their stimulus programs with the start of the pandemic when they hold a number of meetings this week.

The European Stox600 was down 1.4% by 07:06 GMT, as energy and mining stocks led the losses on the back of lower commodity prices.

The benchmark European stock index is now down for three consecutive weeks on fears of slowing global growth and the fallout from tighter regulation of Chinese companies.

All eyes are on the US Federal Reserve’s policy meeting on Tuesday and Wednesday when the Fed is expected to lay the groundwork for reducing stimulus. The Bank of England holds its policy meeting on Thursday.

German stocks fell 1.6 percent, as data showed a larger-than-expected jump in producer prices last month, and 10 new companies were added to the DAX 30 index, becoming the DAX 40.