European Shares Slump As Global Rout Deepens

European stocks tumbled on Monday to extend losses from the previous session amid fears the U.S. economy may be heading for a recession.

Concerns over an escalating Middle East conflict also weighed on markets, with reports suggesting the Benjamin Netanyahu-led government could sanction a pre-emptive strike on Iran to prevent an attack on Israeli soil.

In economic releases, a survey revealed the eurozone economy stalled in July as demand for goods and services deteriorated.

The HCOB composite PMI output index fell to a five-month low 50.2 from 50.9 in June.

The services PMI business activity index dropped to 51.9 from 52.8 a month earlier.

Elsewhere, the U.K. service sector’s growth accelerated somewhat in July as demand increased at the fastest rate in more than a year.

The S&P Global Services PMI rose to 52.5 in July from 52.1 in the previous month. The flash score was 52.4.

Eurozone Sentix Investor Confidence fell sharply from -7.3 to -13.8 in August, marking its lowest level since January.

The pan-European STOXX 600 fell 2.3 percent to 486.27 after plunging 2.7 percent to hit over three-month low on Friday.

The German DAX lost 2.2 percent, France’s CAC 40 shed 1.9 percent and the U.K.’s FTSE 100 was down 2 percent.

Galderma AG surged 7.2 percent after L’Oreal announced the acquisition of a 10 percent stake in the Swiss dermatology company for a non-disclosed amount.

Chip equipment makers ASM International and ASML were down 3-4 percent.

Germany’s Infineon Technologies was little changed, reversing early gains after reports that Nvidia is delaying its next-generation artificial intelligence chips by at least three months.

Aurubis plunged 7.8 percent after the copper producer reported third-quarter earnings before tax (EBT) below expectations.

OCI Global jumped 10 percent after Woodside Energy agreed to acquire the Dutch chemicals maker’s clean ammonia project in Texas for $2.35 billion.

British engineering firm Senior plummeted 5.5 percent despite posting a 10 percent rise in first-half profit.

Ship broker Clarkson slumped 8.5 percent after reporting lower sales and profit in the first half of the year.