Europe shares close lower as economy worries weigh

LONDON (BestGrowthStock) – European shares fell on Thursday after downbeat inflation and manufacturing data from the United States pointed to sluggish growth, overshadowing optimism over corporate results after strong earnings from JPMorgan (JPM.N: ).

The pan-European FTSEurofirst 300 (.FTEU3: ) index of top shares provisionally closed 1.1 percent lower at 1,033.22 points, the biggest one-day percentage fall since July 1.

Investors’ confidence in the pace of economic recovery was stung by data showing U.S. producer prices fell for a third straight month in June, while industrial production only eked out a small gain in the same month.

Earlier, shares received a brief boost from strong results by JPMorgan Chase, which kicked off the quarterly earnings season for U.S. banks by reporting a sharp rise in second-quarter profit (Read more your timing to make a profit.) as it wrote off fewer bad loans.

“Concerns about the macroeconomic situation are so high right now that even the good results that have been published by companies have not been able to push the markets higher,” said Oliver Roth, head trader at Close Brothers Seydler Bank in Frankfurt.

(Reporting by Harpreet Bhal)

Europe shares close lower as economy worries weigh