Europe close: Stocks slip as OECD warns on costs of war in Ukraine
European stocks extended losses on Wednesday after the Organisation for Economic Cooperation and Development warned of the economic costs for the world economy of Russia's invasion of Ukraine.
"This really shouldn't have come as too much of a surprise, however markets in general tend to view the world through a rather rose-tinted prism, which is largely detached from the experiences of ordinary people on the ground," said Michael Hewson, chief market analyst at CMC Markets UK.
"To have the risks to the global economy, particularly in Europe as well as the UK, spelt out so starkly, seems to have prompted increased anxiety amongst investors sending yields higher, and equity markets lower."
The pan-European Stoxx 600 was down 0.57% at 440.37 with all major regional bourses lower. International markets have pulled back this week amid nervousness over forthcoming US data releases this week, including the latest inflation reading on Friday.
In economic news, German industrial production rose less than expected in April, according to figures released by Destatis.
Production increased by 0.7% following a 3.7% decline in March, coming in below expectations for a 1% rise. On the year, industrial production was 2.2% lower in April following a 3.1% decline a month earlier.
Shares in basic resources and banks were struggling, whilst the retail and technology sectors were better performers on the Stoxx 600.
In equity news, shares in Credit Suisse jumped even after the embattled lender warned that it is likely to post a group-wide loss for the second quarter.
Kindred Group jumped 8% after securing a gambling license in the Netherlands.
Melrose Industries surged 11% after the GKN owner announced the launch of a £500m share buyback following the agreed sale of its US division.
Low-cost airline Wizz Air slumped as it expected to make a first-quarter loss despite strong summer demand as it deployed extra resources to minimise disruption due to staff shortages and supply chain issues.
Zara owner Inditex advanced 6% after reporting an 80% rise in net profit for the February-April period.
Shares in industrial software maker Aveva were up as the firm reported a 7.1% rise in pro-forma annual revenue to £1.24bn. Adjusted operating profit rose 7.7% to £365.1m.