Europe: Stocks hit by US-China tensions, recovery doubt

After hitting rock bottom in April, IHS Markit's Flash Composite Purchasing Managers' index recovered to 30.5 from April's 13.6, but was still far below the 50 mark separating growth from contraction.

"Should cases re-emerge, it will remind investors that the path back to growth will be slow and bumpy. Add to that the National Congress meeting in China amid boiling US-China tensions." However, banks, oil and gas and technology companies were the biggest drags on the index on Thursday as risk appetite took a hit.

Premier Inn owner Whitbread tumbled 13.4 per cent after it said it would seek £1.01 billion in fresh cash from shareholders to help weather the Covid-19 crisis.

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