European stocks open lower as interest rate pressures and China’s economy mount

On Friday, August 18, European stocks opened lower and are on their way to record a weekly loss, as risk appetite was negatively affected by concerns about interest rates remaining high globally for a longer period, as well as concerns about the growth of the Chinese economy.

And by 07:03 GMT, the European Stoxx 600 index fell 0.5% and is on its way to recording the fourth consecutive day of losses if it continues down for the end of trading.

The rise in bond yields also pressured stocks this week, prompting the STOXX 600 index to record a weekly decline that could reach 2%.

The Chinese economy is another factor that preoccupies investors, as economic data and problems facing the Chinese real estate sector showed the extent of the faltering recovery there after the pandemic.

Shares of major luxury goods companies with strong exposure to China, such as LVMH, Kering and Ermis, declined by rates ranging between 0.6% and 1.2% due to growing concerns about the impact of weak economic growth in China, the second largest economy in the world.

European mining stocks, which are also exposed to China, fell 1.1% in early trade.

The FTSE index fell 0.6% after data showed that British retail sales fell more than expected in July.