German shares decline amid slow growth, virus fears
German shares experienced declines in Europe on Friday due to a bigger-than-expected rise in producer prices. Meanwhile, the benchmark STOXX 600 was poised for its worst week since February, amid signs of slowing growth and rising coronavirus cases.
The pan-European STOXX 600 fell 0.4% by 0744 GMT, while Germany’s DAX dipped 0.6% as data showed a 10.4% increase in producer prices year-on-year in July. Economists had anticipated a 9.2% increase.
The mining index inched down 0.5%, extending a 4% drop on Thursday and was looking to be the worst-performing European sector for the week.
Indications of a slowdown in the global economic recovery and an increase in the number of cases due to the COVID-19’s Delta variant have pushed Europe’s STOXX 600 away from record highs this week.
The index plummeted 1.5% on Thursday alone, trailing a fall in global equities on signs that the US Federal Reserve could start reining in easy money policies later in the year. The US S&P 500 upended those declines to end marginally higher.
Travel and leisure shares also took a 0.9% loss amid fears that the spread of the Delta variant could prompt more travel restrictions.