London, Feb 7: Losses in eurozone stock markets accelerated Thursday as a pessimistic economic growth outlook dampened sentiment and US markets opened firmly in the red.
“Yet more bad news reinforces the impression that the eurozone is headed steadily into recession territory,” noted IG analyst Chris Beauchamp.
The EU Commission, the bloc's executive arm, said it now expects growth of 1.3 percent in the eurozone this year, a significant cut from the 1.9 percent it predicted only last November.
It said Europe is facing international headwinds — including Brexit fears, Italian economic woes and the global trade war — which have now taken the steam out of a post-crisis recovery in the eurozone.
“That eurozone growth downgrade (is) not helping matters, but after their recent surge markets seem quite vulnerable to an outbreak of bad news,” Beauchamp told AFP.