European stocks fall on recession fears

European shares fell on Friday, heading for a weekly loss on fears that monetary policy tightening, inflationary pressures and an energy crisis could push the global economy into recession.

The pan-European Stoxx 600 index was down 0.3 percent by 0721 GMT. Travel stocks led the declines.

Among the stocks that witnessed the biggest decline, the French company Sodexo for catering services, which fell by 1.9 percent.

The index is expected to end the week down 0.3 percent as gains in commodity and oil-related stocks, mining and food and beverage stocks were offset by losses in the real estate and retail sectors.

Shares of FLS Midth jumped 7.3 percent after the company raised its annual sales forecast, as the cement and mining equipment maker beat second-quarter profit forecasts.

German producer prices in July saw their highest ever increase on an annual and monthly basis as energy costs rose due to the war in Ukraine. Germany’s DAX index fell 0.3 percent.