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July 25 Reuters European shares edged lower on Monday as German business morale fell more than expected in July and a slew of downbeat earnings underlined rising worries about a hit to economic growth.

The panEuropean STOXX 600 index fell 0.1, after logging its best weekly gain in two months on Friday. Losses were led by oil producers as crude prices fell on demand worries.

Germany39;s Ifo institute showed high energy prices and the threat of gas shortages weighed on business sentiment in Europe39;s largest economy in July.

This comes after a survey over the weekend showed a number of industrial companies in Germany are cutting production in reaction to soaring energy prices. Last week, euro zonewide data showed PMIs unexpectedly shrank in July.

The market is once again expressing fears about a dimming economic outlook and possible recession, said Stuart Cole, head macro economist at Equiti Capital.

Until we see firm signs that we are approaching a bottoming out in economic data, or that the Fed39;s position is changing in favour of a more dovish tone, equity markets will remain pressured.

Investors widely expect the U.S. Federal Reserve to raise interest rates by another 75 basis points when it concludes a twoday policy meeting on Wednesday. 

This would…