Europe: Stocks post worst month Since 2011 on Fed, China concern 

SEP 1, 201512:22 AM

[FRANKFURT] European stocks posted their worst month in four years, as investors weighed Federal Reserve comments for clues on the trajectory of interest rates, while confidence waned in China's ability to prop up the market.

The Stoxx Europe 600 Index slid 0.1 per cent to 362.79 at the close of trading, extending its monthly drop to 8.5 per cent. The equity gauge earlier pared losses of as much as 0.7 per cent after data showed the euro area's inflation rate rose faster in August than estimated. The volume of shares changing hands was 56 per cent lower than the 30-day average as the UK market was closed for a holiday.

"There's still no clear message from Jackson Hole and that's the message the entire market is waiting for," said Guillermo Hernandez Sampere, who helps manage about 150 million euros (US$168 million) as head of trading at MPPM EK in Eppstein, Germany. "Any panic created out of this high volatility keeps investors out of the market. The fact that our English colleagues are not in the office affects activity as well."

Worldwide shares plummeted by more than US$5 trillion this month as concern that China's economy may be weaker than previously thought exacerbated investor worry about whether global growth can withstand higher US interest rates.