European stocks tumble as China growth forecast falls

Shares in Europe fell today (March 5th) on the news that China has reduced its growth outlook for the coming year and traders expressed concern over the long-term economic stability of the eurozone, with the service sector shrinking more than had been anticipated.

The Stoxx Europe 600 Index moved back by 0.7 per cent to 265.35, with its losses led by Rio Tinto and Salzgitter as copper prices fell and uncertainty surfaced about the steelmaker's outlook, Bloomberg reports.

Global trading was also affected, with futures on Standard and Poor's 500 Index depreciating by 0.4 per cent and the MSCI Asia Pacific Index falling by 0.9 per cent.

"The market is really taking more of a pause for breath after the strong rally that we have seen," said Edmund Shing, an equity strategist at Barclays Capital in London/

He added that the mild pessimism currently afflicting the market could be lifted by some positive macroeconomic data in the coming months.

Responding to China's mild contraction in growth, entrepreneur Zong Qinghou called on the government to give private business more sway in the country's economy.

Posted by Chris Weaver