- Spain to cap gas price, utilities' profits
- H&M drops after downbeat earnings
- Oil stocks among few gainers
Sept 15 (Reuters) - European shares slipped on Wednesday as utilities fell on Spain's move to cap energy bills, while luxury stocks continued to weaken on worries about a slowing Chinese economy.
Spain's cabinet passed emergency measures on Tuesday to reduce sky-high energy bills by redirecting billions of euros in extraordinary profits from energy companies to consumers and capping increases in gas prices.
The benchmark STOXX 600 index (.STOXX) was down 0.8%, and off about 2.5% from the record high in mid-August.
Data showed China's factory and retail sectors faltered in August with output and sales growth hitting one-year lows following fresh coronavirus outbreaks and supply disruptions. read more
"The headlines continue to deter foreign investor interest back into Beijing," said Edward Moya, senior market analyst at OANDA.
"Nervousness is growing that this string of Chinese crackdowns/concerns could be the first domino to fall."
"If you consider Macau, that's impacted the luxury goods sector in Europe. China retail sales numbers were also pretty weak," said Keith Termperton, a sales trader at Forte Securities.
While optimism about a steady European economic recovery remains, the STOXX 600 is on course to end its seven-month winning streak in September, as investors grow anxious over global growth and monetary policy outlook.
UK stocks (.FTSE) also came under pressure after data showed Britain's inflation rate posted a record jump to hit a nine-year high in August.
Swedish Match (SWMA.ST) rose 4.3% after the tobacco and nicotine products maker unveiled plans to spin off its U.S. cigar business to shareholders and list it on the stock market.
Dutch online food delivery company Just Eat Takeaway (TKWY.AS) dropped 4.6% after the Financial Times reported that UK rival Deliveroo (ROO.L) and Amazon (AMZN.O) will offer free delivery to Prime subscribers. Deliveroo gained 1.1%.
Oil stocks (.SXEP) were the top gainers as crude prices climbed after industry data showed a larger than expected drawdown in crude oil stocks in the United States.
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