European stocks slumped at the opening on Friday as persistent worries about an economic slowdown and rising inflation rattled investors.
The pan-Europe Stoxx 600 index had fallen 1.3% in early deals, but was paring losses to 0.71% by 0900 BST. All major regional bourses were lower.
Data earlier from Asia showed manufacturing activity was lacklustre in September as signs of slowing Chinese growth and factory shutdowns caused by the coronavirus pandemic weighed on the region’s economies.
“The litany of current woes which have beset investors continue to grow. Aside from the Federal Reserve tapering programme, further evidence of slowing growth in China and elevated inflation on both sides of the pond, additional concerns are appearing as the US considers its debt ceiling actions and whether to proceed with the President’s proposed (and significant) infrastructure spending plan,” said interactive investor’s Richard Hunter.
In equity news, shares in UK online electricals retailer AO World plunged 18% after missing estimates in an unscheduled trading update that revealed the impact of a shortage of delivery drivers in the UK and competitive pressures in Germany.
Shares in Norwegian renewable power producer Scatec fell 16% after a delay to the start of construction of a storage project in South Africa.
