European Shares Resume Declines On Growth Worries

(RTTNews) - European stocks fell in cautious trade on Wednesday as investors fretted about slowing Chinese growth and watched developments around Brexit and Italy's budget.

The euro held steady while the British pound added to gains against the dollar on hopes for a breakthrough in Brexit negotiations. Media reports suggest that a Brexit deal could come as early as Monday.

The pan-European Stoxx Europe 600 index was down 0.3 percent at 371.96 in late opening deals after rising 0.2 percent in the previous session.

The German DAX and France's CAC 40 index were down around half a percent, while the U.K.'s FTSE 100 was down 0.2 percent, recouping early losses.

Shares of Scapa Group tumbled more than 3 percent in London. The supplier of bonding solutions reported a fall in first-half revenues due to adverse currency movements.

HSBC Holdings gained 1 percent after the bank entered into a $765 million settlement in the U.S over its sale of mortgage-based securities during the run-up to the financial crisis.

French luxury goods conglomerate LVMH lost 5 percent on fears of a looming slowdown in Chinese demand as the U.S.-China trade war escalates.

In economic releases, France's industrial production grew at the slowest pace in three months in August, the statistical office Insee said.

Industrial production climbed 0.3 percent from July, the weakest since May when it remained flat. Production had increased 0.8 percent in July.

The U.K. economy logged a flat growth in August as the increase in industrial production was offset by contraction in construction and farm sectors, a government report showed.

Gross domestic product remained unchanged after expanding 0.4 percent in July. Economists expected GDP to climb 0.2 percent.
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