Renewed worries about China's economic growth outlook and Europe's debt problems cast a shadow over European shares Thursday, according to dpa. European stocks entered the third quarter of the year by posting solid falls with the benchmark Stoxx Europe 600 index sliding by 1.6 per cent to 239.37 points. The latest shakeout in shares followed the release of official data showing China's key purchasing managers index declining in June. At the same time, Moody's Investors Service said Wednesday that it was considering downgrading Spain's Triple-A sovereign ratings because of deteriorating economic conditions in the nation, which has been at the centre Europe's debt crisis. The news sent the Madrid's Ibex 35 index down by 2.6 per cent to 9,024.40 in opening trade. By late morning trading Spanish shares had lost 1.5 per cent. Adding to the nervous mood prevailing on European share markets, is Thursday's planned move by the European Central Bank not to renew 442 billion euros (539.4 billion dollars)in market funds. The latest bout of investor nerves also comes ahead of the release later Thursday of a string of key US economic data. The fall in the Stoxx 600 reflected drops across national European bourses with Europe's premier stock market in London declining by 1.3 per cent in early trading. While Frankfurt also slumped by more than 1 per cent, shares in Paris dropped by more than 2 per cent. Despite the new signs of share market jitters, the euro climbed by 0.5 per cent to 1.22 dollars. The share sell off came in the wake of a string of falls across Asia with Tokyo falling by more than 2 per cent and stocks in Shanghai and Hong Kong dropping by about 1 per cent. -- SPA
