Mining sector pushes European shares lower as energy crisis looms

The sell-off in European shares continued on Wednesday, as investors worried about an energy crisis and bleak growth prospects, while hawkish comments from the US Federal Reserve on monetary policy further pressured sentiment.

By 0716 GMT, the European Stoxx 600 index fell 0.2 percent, hovering near its lowest level in a month due to the poor performance of the mining sector.

But the energy sub-index rose 0.2 percent, extending gains for the seventh consecutive day.
Investors are cautious ahead of the Jackson Hole symposium after Federal Reserve Chairman Neil Kashkari in Minneapolis on Tuesday reiterated the US central bank’s focus on controlling inflation above all else.

The market is also awaiting the minutes of the European Central Bank meeting due on Thursday, which is also likely to appear hawkish.

Richemont rose 1.6 percent after the company announced that Farfetch would take a 47.5 percent stake in Yux Net-a-Porter, a loss-making retail fashion unit of the luxury goods group, and that Alabbar would take 3.2 percent.

Bavarian Nordic shares fell 2% after the Danish biotech company said it was making “every effort” to meet the high demand for the monkeypox vaccine around the world, maintaining its business forecast for this year.