European Shares Nosedive Amid Global Equity Sell-Off

European shares hit a near six-month low due to fears of a U.S. economic slowdown, with the pan-European STOXX 600 index dropping 3.1%. Financial sectors suffered the most, while OCI Global saw substantial gains following acquisition news.

European shares plunged to almost a six-month low as the week began, driven by a global sell-off in equities amid concerns about a potential slowdown in U.S. economic growth.

By 0711 GMT, the pan-European STOXX 600 index had declined by 3.1% to 482.42 points, marking its lowest level since February 13. This significant drop positions the index for its worst day in two and a half years and follows its worst week in nearly ten months last Friday. Notably, the index fell below the 500-mark for the first time since April 15.

Market anxiety about a possible U.S. recession has led investors to shun risk assets, resulting in red openings for all major European bourses. The financial sectors were particularly hard-hit, with banks losing 4.2%, financial services shedding 3.6%, and the tech sector slipping 5%. However, individual stocks such as Galderma and OCI Global experienced gains, the latter rising 7.3% after Woodside Energy acquired its clean ammonia project for $2.35 billion.