European shares fall after a 3-day rally on recession fears

European shares fell on Wednesday after concerns about a global recession outweighed recent optimism over the lifting of lockdown restrictions in China.

The pan-European Stoxx 600 index fell 0.7 percent by 0708 GMT, ending a three-day rally after a gruelling overnight session on Wall Street on the back of bleak US consumer confidence data.

Germany’s DAX index led the decline among other indicators in the region, falling by 0.9 percent ahead of the preliminary reading of German inflation expected at 1200 GMT.

H&M shares rose 0.7% after the world’s second-largest fashion chain reported a more-than-expected 33% growth in quarterly profit.