European shares open lower as recession fears intensify

European shares fell on Friday as recession fears and expectations of a big interest rate hike during the Federal Reserve’s (US Central Bank) meeting next week weighed on sentiment.

The pan-European Stoxx 600 index fell one percent moments after the opening bell, bringing its declines this week to more than two percent.

All major European sector indices fell at 0711 GMT, with the most notable losses being the travel and leisure sector.

The World Bank said late Thursday that the global economy could be headed for a recession, with central banks dealing sharply with high inflation, adding to the anxiety prevailing ahead of the Federal Reserve meeting.

Shares of troubled German gas-importing energy company Uniper plunged 9.4 percent to the bottom of the STOXX 600 index, as it struggled to keep up with costs after Russia’s sudden halt to a major natural gas pipeline earlier this month.