European shares slip on growing recession fears

European shares extended losses to a second session on Tuesday, hit by worries about an energy supply crunch, while rising COVID-19 cases in China exacerbated global recession concerns.

Losses were broad-based with healthcare, technology and luxury stocks weighing the most. Oil stocks eked out small gains.

The pan-European STOXX 600 index fell 0.6% by 0727 GMT, after ending down 0.5% on Monday.


Miners fell 1.2%, as several Chinese cities imposed fresh COVID-19 curbs to rein in new infections, in what could be another hit to economic growth in the world's second-biggest economy and top metal consumer.

Meanwhile, a maintenance shutdown of the Nord Stream 1 pipeline from Russia to Germany is expected to end on July 21, but worries are high that it may get extended due to the Russia-Ukraine war, affecting the region's energy supplies.

Among individual stocks, power giant EDF jumped 6.1% to top the STOXX 600, after sources said the French government is poised to pay more than 8 billion euros ($8.05 billion) to bring the company back under full state control.

Swedish cloud communications company Sinch slumped 23.%, extending declines after a short-seller report from Ningi Research.