European shares fell on Wednesday, as weak retail sales in Germany and slowing factory activity in the euro zone raised concerns about economic growth amid record inflation.
and fell European Stoxx 600 Index 1% after rising as much as 0.4% earlier in the day. The index lost 1.6 percent during the month of May after rising inflation raised fears of violent intervention by the central bank.
Data showed retail sales in Germany fell 5.4% in April, more than expected, while growth in industrial activity in the euro zone slowed last month after factories faced a shortage of supplies, high prices and plunging demand, according to Archyde.com.
Economists at Deutsche Bank had expected the European Central Bank to raise rates by 50 basis points in September.
Shares of travel and real estate companies led the Stoxx 600 index down.
The FTSE fell 1% and the German DAX fell 0.3%.
The shares of the British Dr. Martins shoes company rose about 20% after it expected a greater growth in its annual revenues as a result of raising prices to keep pace with inflation and increasing sales.
Shares in Deutsche Bank’s asset manager DWS fell 6.2% after the chief executive said he would step down next week as the company faces accusations of misleading investors about “green” investments.