European stocks traded lower on Wednesday as investors fretted about weakening U.S. and Chinese growth.
Economic activity in the U.S. manufacturing sector contracted in August for the fifth consecutive month and the 21st time in the last 22 months, raising concerns the worlds largest economy is headed for recession.
Elsewhere, a private survey revealed that growth in Chinas services sector activity slowed in August despite the summer travel peak.
On the positive side, the euro areas private sector economic growth accelerated in August, thanks to a faster increase in services activity.
HCOBs composite Purchasing Managers Index for countries in the currency union, compiled by S&P Global, improved to 51.0 in August from Julys 50.
Elsewhere, the U.K. service sector activity expanded at the fastest pace in four months, final survey data from S&P Global showed. The corresponding index rose to 53.7 in August from 52.5 in the previous month.
The pan-European STOXX 600 was down a little over 1 percent at 514.58 after falling 1 percent on Tuesday.
The German DAX dipped 0.7 percent, Frances CAC 40 shed 0.8 percent and the U.K.s FTSE 100 was down 0.7 percent.
Semiconductor companies were the biggest losers. ASML Holdings fell 5.3 percent, Infineon lost 3.2 percent and STMicroelectronics declined 2.3 percent after reports that the U.S. Justice Department has sent Nvidia a subpoena as part of a deepening probe into the AI heavyweights antitrust practices.
Swedish telecom firm Telia fell over 1 percent after announcing a restructuring program.
Commerzbank AG shares dropped 2.2 percent. According to a Bloomberg report, the German government plans to sell a stake of 3 percent to 5 percent in the lender.
Energy stocks traded lower in London as oil extended steep losses from Tuesday on demand concerns. BP Plc shed 0.7 percent and Shell dropped 1.1 percent.
Housebuilder Barratt Developments declined 2 percent after its profits dropped 75 percent in the year to June.
Insurer Direct Line Insurance fell 1.2 percent after reporting first-half results below expectations.