Sanctions fears weigh on European stocks

European shares retreated from more than six-week highs on Wednesday as the United States and its allies are likely to further isolate Russia’s economy with more sanctions, boosting global inflation.

The pan-European STOXX 600 index fell 0.3 percent, joining Wall Street and Asia markets, as concerns about a tightening from the US Federal Reserve also pressured.

The technology sectors and non-essential consumer goods companies were the biggest losers on the index.

Data on Wednesday showed German industrial orders fell more than expected in February, as weak demand from abroad slashed manufacturing activity as supply shortages, high energy prices and war-related uncertainty in Ukraine raised concerns about slowing growth.

Danish wind turbine maker Vestas fell 2.3 percent after the company said it was pulling out of Russia, where it owns two factories.

French shares fell 0.3 percent, after they recorded their worst session in nearly a month yesterday.

An opinion poll showed that President Emmanuel Macron would defeat Marine Le Pen in the French presidential elections, leading in the first round on April 10 and winning later on April 24, despite Le Pen making progress in recent weeks.