European stocks caught in global selloff on recovery concerns

European stocks fell on Thursday, with cyclical stocks such as miners, automakers, and banks leading early declines, as global mood soured on economic recovery worries.

The pan-European STOXX 600 index dropped 0.7% by 0711 GMT after Asian markets tumbled on concerns about China’s recovery and tighter regulation on technology companies. [MKTS/GLOB]

In Europe, interest rate-sensitive banking shares fell as government bond yields extended their decline. An index of the euro zone banks was down 1.5% as falling rates hurt profit margins. [GVD/EUR]

Miners and automakers also fell more than 1%.

German automotive lighting group Hella slipped 1.5% after brakes maker Knorr-Bremse dropped plans to acquire a 60% stake in the company. Knorr-Bremse shares jumped 8.5%.

Remote connectivity software specialist Teamviewer tumbled 9.4% on reporting weaker-than-expected billings growth in the second quarter.

In the UK, Deliveroo rose 2.3% after it posted 88% jump in orders during the June quarter.