ROTTERDAM/LONDON: European stocks inched lower on Thursday as investors swapped energy and retail stocks with shares of companies seen as safer during heightened economic uncertainty following a new round of coronavirus restrictions in the eurozone.
The pan-European STOXX 600 index slipped 0.1%, with oil & gas stocks falling 1.4% on the back of weaker crude prices. Global sentiment took a hit after a selloff in Chinese technology shares on worries that they will be de-listed from US bourses, while the number of coronavirus cases in Germany saw the biggest increase since Jan. 9. European markets have struggled this week despite a surprisingly strong recovery in March business activity.
H&M dropped 2.2% after at least one Chinese online retailer appeared to drop its products following social media attacks on the Swedish company for saying it was “deeply concerned” about reports of forced labour in the farwestern region of Xinjiang in China. Shares of German sportswear firm Adidas, which also came under fire in China, was down 4%. Cineworld slumped 10.4% after it reported a $3 billion loss for 2020 and said it will ask shareholders to approve a raise in its debt ceiling. Gains in defensive sectors such as utilities, telecoms and food & beverage, which tend to decouple from the economic cycle, offered some support to the market.
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