European shares fell on Wednesday, dragged down by concerns regarding slowing economic growth, while bleak expectations from Credit Suisse weighed on bank shares, while investors awaited the European Central Bank meeting on Thursday and the US Central Bank next week.
The pan-European Stoxx 600 index ended the trading session down 0.6 percent.
The European banking index fell 0.9 percent following Credit Suisse said it was likely to post a loss for the group in the second quarter, while the Swiss investment bank was hit by market volatility.
On the other hand, money markets have raised their bets on interest rate increases from the European Central Bank, as they now expect increases of 75 basis points by September with inflation hitting a record high last month.
The European Central has so far indicated increases starting in July, and markets had earlier expected two increases of 25 basis points each.
Data released today showed that industrial production in Germany recovered but rose less than expected.
The index of European retail stocks rose 2.1 percent following falling in the previous session when the US company Target issued a warning regarding its profit margins.
(Archyde.com)
