European Shares Slide On Growth Concerns

European stocks fell on Thursday after the Bank of England held interest rates steady and maintained its existing level of asset purchases, as widely expected, but forecast a slower post-pandemic economic rebound in the U.K.

There is some respite on the data front as official data showed that German factory orders grew more than expected in June, driven by both domestic and foreign demand.

Orders advanced 27.9 percent on a monthly basis in June, faster than the 10.4 percent increase seen in May. Economists had forecast a 10.1 percent rise for June.

The pan European Stoxx 600 index dropped 0.4 percent to 363.67 after rising half a percent on Wednesday.

The German DAX edged down marginally, France’s CAC 40 index declined 0.6 percent and the U.K.’s FTSE 100 was down 1.3 percent.

Glencore shares slumped 5 percent. The mining and commodity giant reported a net loss of $2.6 billion for the first half of the year compared with a $226 million profit a year earlier.

Phoenix Group Holdings rallied 3.3 percent. The life and pensions consolidator said the recent acquisition of ReAssure from SwissRe will substantially boost cash coming into the group.

Media company ITV declined 1.7 percent after it reported a 17 percent revenue drop for the first half of 2020.

Insurer AXA tumbled 3.6 percent after it booked a 1.5 billion-euro ($1.8 billion) charge for claims related to Covid-19 in the first half and dropped its 2020 earnings target.

Credit Agricole edged down half a percent. The country’s second-biggest listed bank reported a 22 percent fall in quarterly profit after setting aside more than expected to cover souring loans due to the Covid-19 crisis.

Adidas advanced 1.6 percent after the sportswear firm swung to a loss in the second quarter, but said it expected to bounce back to profitability in the third quarter.

Lufthansa shares declined 1.6 percent. The airline said it does not expect air travel demand to return to pre-crisis levels before 2024.

Biopharmaceutical company MorphoSys slumped 7.2 percent after posting a wider loss in the second quarter.

Engineering company Siemens climbed 3.4 percent after it beat forecasts to post an 8 percent rise in third-quarter profit.

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