Concerns about a recession began to haunt the market after seeing dismal European manufacturing and services PMI data in June.
Data released at the start of the European session showed continued weakness in both sectors in the two largest economies of the European Zone, Germany and France.
France's manufacturing sector continued to contract for a fifth consecutive month and was the weakest since February 2021 on a decline in output and a faster fall in demand.
Meanwhile, service activity fell below the most significant contraction since February 2021 in June due to weak demand following a continued decline in new orders both domestically and abroad.
In Germany, manufacturing activity contracted further to a 3-year low following a sharp decline in goods production this month.
The service sector, on the other hand, still recorded expansion but eased to a three-month low due to moderate increases in new business and reduced demand.
Overall in the European Zone, manufacturing activity contracted to its weakest level in 3 years and services expanded slowly since January.
Apart from the European Zone, investors also looked at the release of PMI data from the UK which also showed a contraction in the manufacturing sector in June to a 5-month low following a sharp drop in new orders due to weak underlying demand.
As for services activity, it grew at the slowest rate in 3 months, weakened by rising price pressures.
