European Shares Drop Amid Global Growth Worries

By Investors Hub

European stocks have moved mostly lower Monday on global growth worries and amid lack of fresh catalysts after the U.S. midterm elections.

While the German DAX Index has tumbled by 1.4 percent, the French CAC 40 Index and the U.K.?s FTSE 100 Index are down by 0.5 percent and 0.4 percent, respectively.

Semiconductor solutions firm Infineon Technologies has moved sharply lower in Frankfurt after reporting weak net profits in its fiscal fourth quarter.

Funeral services provider Dignity Plc has also come under pressure in London after reporting a sharp drop in third quarter earnings.

British American Tobacco is also posting a steep loss on reports of a potential ban on menthol cigarettes. Shares of Imperial Brands have also moved significantly lower.

On the other hand, energy stocks have moved to the upside as oil prices have climbed after record run of losses on the back of news that Saudi Arabia will reduce crude sales in December.

Oilfield services firm John Wood Group is posting a standout gain after winning three contracts totaling $53 million from Abu Dhabi National Oil Company.

Rio Tinto shares have also advanced. The mining giant successfully completed its off-market buy-back, achieving its share purchase target of approximately 41.2 million shares for a total consideration of $2.1 billion.

In economic news, French gross domestic product is set to grow 0.4 percent in the fourth quarter of this year, the Bank of France projected in its latest monthly business survey report.

The pace of growth accelerated to 0.4 percent in the third quarter from 0.2 percent in the second quarter, largely underpinned by domestic demand and exports.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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