European stocks declined, extending losses for a sixth consecutive session, dragged lower by global economic slowdown fears and higher crude prices.German industrial orders fell more than expected in July, the federal statistics office said. Euro zone construction PMIs and retail sales data are due later in the day.
“Key risks that could undermine equity sentiment in September include developments in China’s property market and potential increases in food and energy prices,” said Bruno Schneller, a managing director at INVICO Asset Management.Another concern, Schneller said, was any deliberations on further oil production cuts, which could reignite inflationary concerns and dampen investor confidence.
“The Europe data were rather weak. We think there is still a high chance to have a mild recession in the U.S. and Europe toward the end of the year or beginning of next year,” said Redmond Wong, Greater China market strategist at Saxo Markets.