Title: European shares join global selloff on growth worries

May 24, 2022 03:55AM ET

By: AnalysisWatch

European shares fell steeply at Tuesday's open, following falls in global stock markets on fresh growth worries, with investors eyeing data on the May purchasing managers' index due in the morning session.

The pan-European STOXX 60 index slumped 1 percent at 0708 GMT, after starting the week up 1.3 percent on Monday. All major sectors fell, with utilities and commodity-related stocks leading the declines.

Chinese equities fell 2 per cent, weighing on Asian markets, while US stock futures fell sharply as increasingly negative corporate results took the hit from rising inflation and slowing growth.

Snap Inc (NYSE:SNAP) cut its quarterly forecasts, triggering a slump in its shares after the market. Snap's Frankfurt-listed shares tumbled 34.6 per cent.

The global economic outlook has 'darkened', warned political and business leaders gathered at the World Economic Forum in Davos.

Data on the purchasing managers' index, expected shortly, is expected to show that eurozone manufacturing growth fell slightly in May compared to April.

Among individual stocks, Norwegian advertising company Adevinta climbed 3.8 per cent after posting a better-than-expected first-quarter core profit.

Tele2 slumped 8.1% after Investment Company Kinnevik sold a 7.2% stake in the telecom operator.