STOXX 600 hits six-month low in global rout on US recession fears
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Volatility index hits highest since March 2022
Major European exchanges touch multi-month lows
Euro zone business growth at a standstill, survey shows
Galderma up after L'Oreal says it will buy 10% stake
STOXX 600 closes down 2.2%
Updated at 1600 GMT
By Ankika Biswas and Pranav Kashyap
Aug 5 (Reuters) -The main European stocks index hit its lowest in over six months on Monday as fears of a slowdown in the world's largest economy knocked equities globally, with energy and utility stocks at the forefront of a broad-based market slide.
The STOXX 600 .STOXX closed 2.2% lower, but off the day's low. The continent-wide index logged its steepest three-day decline since June 2022, closing below the key 500-point mark for a second day.
The "fear gauge" Euro STOXX volatility index .V2TX hit its highest level since March 2022, reflecting a sharp rise in investor anxiety.
Risk-off sentiment prevailed on fears that the United States could tip into recession, sharply hitting Wall Street and equity markets elsewhere, and steering hopes of interest rate cuts to stimulate economic growth.
However, news of a rebound in U.S. services sector in July offered some relief to investors, helping U.S. and European stocks pare some of the day's losses.
Among major European bourses, Germany's DAX .GDAXI, France's CAC 40 .FCHI, Britain's FTSE .FTSE and Spain's IBEX 35 .IBEX fell between 1.4%-2.3%, hitting multi-month lows intraday.
"Traders were already concerned over the global demand growth outlook," said David Morrison, senior market analyst at Trade Nation. "Add this (higher likelihood of U.S. slowdown), with the economic uncertainty over China and Europe, can only suggest weaker demand for oil and other energy products going forward."
Economic concerns back home were also underscored by euro zone business activity growth stalling last month.
Traders now see a 78% chance of a 50-basis-point Federal Reserve rate cut in September, while bets of a second cut by the European Central Bank stand at 88%, according to LSEG data.
In a bruising session for all the European sectors, energy .SXEP hit a six-month low, tracking lower oil prices, while utilities .SX6P touched an over one-month low. Banks .SX7P also tumbled to a four-month low on U.S. recession fears.
Meanwhile, technology .SX8P and chemicals .SX4P were some of the least hit sectors, although down around 1% each.
Among single movers, Europe's largest copper producer Aurubis NAFG.DE slumped 12% after a third-quarter pre-tax profit miss.
On the flip side, Infineon IFXGn.DE rose 1.3% following job cut plans, while OCI OCI.AS jumped 13% on plans to sell its Clean Ammonia project in Texas to Woodside Energy for $2.35 billion.
Galderma GALD.S rose 1.3% after L'Oreal OREP.PA said it would acquire a 10% stake in the Swiss skincare firm.
Reporting by Pranav Kashyap and Ankika Biswas in Bengaluru; Editing by Sonia Cheema, Mrigank Dhaniwala and Christina Fincher
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