European stocks hit 2-month lows on inflation worries

European stocks slumped to their lowest in two months on Friday, extending a global selloff as growing worries about slowing economic growth and rising inflation dented investor mood.

The Europe-wide STOXX 600 index fell 1.3% by 0715 GMT as travel & leisure stocks, banks and automakers led broad declines with a more than 2% fall.

British online electricals retailer AO World Plc tumbled 20.4% after it said that revenue growth in the first half of the year was hit by a shortage of delivery drivers in the UK and other disruptions in the global supply chain.

Daimler fell 2.1% even after it said that shareholders voted to spin off its trucking unit and publicly list it by the end of 2021.

BMW AG slipped 0.9% despite lifting its annual profit margin forecast.

Data earlier showed Asia’s manufacturing activity was lacklustre in September as signs of slowing Chinese growth and factory shutdowns caused by the coronavirus pandemic weighed on the region’s economies.