European shares fall as telecom, utilities drag amid recession worries

European shares fell on Thursday, with utilities and telecom firms leading declines amid growing fears of an impending recession.

The region-wide STOXX 600 was down 0.1% at 0815 a.m. GMT.

The index dropped for a fourth straight session on Wednesday on rising concerns over a slowdown in economic growth ahead of a slew of interest rate decisions from major central banks next week.


Among STOXX 600 sectors, telecom and utilities fell about 0.6% and 0.5%, respectively, in early trading.

Real estate stocks rose 0.7%, while energy shares gained 0.3% as oil prices rebounded after slumping to the lowest levels so far this year in the previous session on optimism over China's easing of anti-COVID measures.

Ryanair said on Wednesday that Group Chief Executive Michael O'Leary had agreed to extend his contract to 2028. Shares of Europe's largest airline were up 1.6%.

French automaker Renault fell 1.3%, as talks between Renault and Nissan Motor Co over alliance restructuring are certain to spill into next year, Bloomberg reported on Thursday.

British American Tobacco said it expects full-year revenue growth between 2% and 4% at constant currency rates, as more people use its e-cigarettes and oral nicotine products. Shares of the tobacco firm, however, slipped about 2%.