European shares kick off final quarter of 2022 on weak note

European shares slid on Monday, as investors awaited factory activity data for clues on the health of the euro zone economy after a red-hot inflation report last week stoked expectations of aggressive interest rate hikes by the European Central Bank. The region-wide STOXX 600 index was down 1.3% by 0713 GMT, marking a weak start to the final quarter of this year, and tracking a torrid Wall Street session on Friday.

European shares slid on Monday, as investors awaited factory activity data for clues on the health of the euro zone economy after a red-hot inflation report last week stoked expectations of aggressive interest rate hikes by the European Central Bank.

The region-wide STOXX 600 index was down 1.3% by 0713 GMT, marking a weak start to the final quarter of this year, and tracking a torrid Wall Street session on Friday. The index has fallen 21.5% so far this year, as risk sentiment soured after the Russia-Ukraine war earlier this year jolted the region and sent gas prices soaring, leading to a spike in inflation and sparking concerns about central banks-induced recession.

Barring the oil and gas sector, which rose 0.9% on the back of a jump in crude prices, all STOXX 600 sectoral indexes fell. London's blue-chip FTSE 100 index fared better than its regional peers, shedding 0.9% after the British government reversed plans to cut the highest rate of income tax that helped to spark a rebellion in her party and turmoil in financial markets.

Data due at 0800 GMT is expected to show manufacturing activity across the euro zone shrank for a third straight month in September, according to a survey. The S&P Global's final manufacturing Purchasing Managers' Index (PMI) likely dipped to 48.5 last month from 49.6 in August. Surveys earlier in the day showed Asia's factory activity weakened on a global slowdown, cost pressures.

Credit Suisse tumbled 9.7% after several reports over the weekend. The Financial Times reported that the Swiss Bank's executives spent the weekend reassuring large clients, counterparties and investors about its liquidity and capital position.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)