European stocks tumbled on Wednesday as investors fretted about energy shortages and Britain’s radical tax cuts to spur growth.<\/p>\n
News about the large amount of gas leakage from the Nord Stream pipelines has deepened concerns over energy and the overall economic circumstances in Europe.<\/p>\n
The International Monetary Fund has urged the U.K. government to “re-evaluate” a package of unfunded tax cuts, saying it may fuel inflation and would likely increase economic inequality.<\/p>\n
Weak consumer sentiment readings from Germany and France also raised concerns about the economic outlook. <\/p>\n
The German consumer confidence index plunged to -42.5 in October from revised -36.8 in the previous month, survey results from the market research group GfK showed. The score was weaker than the economists’ forecast of -39.0.<\/p>\n
The French consumer confidence index fell to 79.0 in September from 82.0 in August, the statistical office Insee said. Economists had forecast the index to fall to 80.0.<\/p>\n
The dollar marched to a new 20-year high and government bond yields surged after several Fed officials reiterated their hawkish stance toward interest-rate hikes.<\/p>\n
The pan European Stoxx 600 fell 1.5 percent to 382.61 after closing 0.1 percent lower on Tuesday. <\/p>\n
The German DAX lost 1.6 percent, France’s CAC 40 index shed 1.3 percent and the U.K.’s FTSE 100 was down over 2 percent. <\/p>\n
Swiss pharmaceutical company Roche soared 5.3 percent as Alzheimer’s drug from rivals Eisai and Biogen showed benefit in a large trial.<\/p>\n
Dutch biopharmaceutical company Pharming Group N.V. fell over 1 percent despite news that the U.S. FDA has accepted for priority review its New Drug Application for leniolisib.<\/p>\n
British online fashion retailer Boohoo plunged 13 percent after cutting its full-year forecasts.<\/p>\n
Burberry Group, a luxury fashion company, rallied 3.6 percent as it announced the appointment of Daniel Lee as new Chief Creative Officer, effective October 3.<\/p>\n
German lender Commerzbank AG slumped 6 percent after a warning that its third-quarter operating result would be impacted because of additional provisions at Polish subsidiary mBank.<\/p>\n
Conglomerate Thyssenkrupp plunged 12 percent after JPMorgan reinstated its coverage of the stock with an “underweight” rating. <\/p>\n