European shares skid on recession fears; German producer prices see highest-ever rise
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Aug 19 (Reuters) - European shares fell on Friday and were set for a weekly loss, on fears that a tighter monetary policy, inflationary pressures, and an energy crisis could push the global economy into a recession.
The pan-European STOXX 600 .STOXX slid 0.3% as of 0721 GMT, with travel stocks .SXTP leading the declines.
Among the biggest drags was French catering and food services group Sodexo EXHO.PA , down 1.9%, after Jefferies cut the stock to "hold" from "buy" to factor in a cautious recessionary scenario over fiscal year 2023-2024.
The benchmark is set to end the week about 0.3% weaker, as gains in commodity-linked oil stocks .SXEP and miners .SXPP as well as food & beverage stocks .SX3P were offset by declines in real estate .SX86P and retail .SXRP shares.
FLSmidth FLS.CO jumped 7.3% after raising its annual sales outlook as the mining equipment and cement maker beat second-quarter earnings forecasts.
German producer prices in July saw their highest ever increases both year-on-year and month-on-month as energy costs skyrocket due to the Ukraine war. Germany's blue-chip DAX .GDAXI slipped 0.3%.
Reporting by Anisha Sircar in Bengaluru; editing by Uttaresh.V