Weak China data dents global mood
EZ August downturn deeper than thought PMIs
Host of brokerage downgrades weigh on stocks

Sept 5 Reuters European shares fell to oneweek lows on Tuesday, with economically sensitive sectors leading the selloff as weak services sector data from China and the euro zone fuelled concerns about slowing global growth.

The panEuropean STOXX 600 index was down 0.7, its fifth consecutive session of losses.

Chinaexposed sectors such as luxury and construction materials were among the top drags in Europe as data showed China39;s services activity expanded at the slowest pace in eight months in August.

Meanwhile, the decline in euro zone business activity accelerated faster than initially thought last month as the dominant services industry fell into contraction, according to a survey which suggests the bloc could fall into a recession.

HCOB39;s final Composite Purchasing Managers39; Index PMI for the euro zone dropped to 46.7 in August from July39;s 48.6, a low not seen since November 2020.

Not only is manufacturing in contraction, but services has also followed it. Services had been until this month a bit of an outlier when it came to the performance of the European economy, said Michael Hewson, chief market analyst at CMC Markets.

The calls for an ECB European Central Bank hold next week are only going to get louder.

Money markets are pricing an about 25 chance of a 25 basis point bps rate hike at the Sept. 14 meeting, easing from…