European stocks have fallen to their lowest level in three weeks ahead of the European Central Bank’s update on the timing of a possible reduction in monetary stimulus.
The Stoxx 600 Europe Index is currently 0.5% lower as of midday in London trading, with cyclical sectors under pressure.
Travel and leisure stocks fell the most, weighed down by a 9% slump in EasyJet after the airline announced a share sale and said it rejected a takeover offer. Mining stocks also dropped as iron ore futures declined.
Equities in the European region have fallen with global peers this week amid growing fears over the economic recovery and reduced support expected from central banks. The Stoxx 600 index, up 16% year-to-date, has stalled after hitting an all-time high in August and is now at its lowest level in three weeks.
Investor attention has turned to the European Central Bank as it decides how much bond buying the region will need in the fourth quarter of this year, with its policy announcement scheduled for late afternoon on September 9.
Among individual stocks, Prosus NV dropped 5.8% in Amsterdam trading as partly owned Tencent slumped in Hong Kong trading after Chinese regulators summoned video game companies to discuss further oversight of the industry.
