European Stocks Drop Amid Concerns Over U.S. Economic Slowdown

European stocks opened 1% lower on Wednesday amid fears of a U.S. economic slowdown. The pan-European STOXX 600 index reflected a selloff seen on Wall Street. Semiconductor companies, particularly ASML Holdings and Nvidia, saw significant declines. Investors await crucial economic data from the euro zone for further insights.

European stocks opened sharply lower on Wednesday, marking a 1% drop as global markets grappled with concerns about an imminent slowdown in the United States. Investors are now closely watching for more economic data from the euro zone.

The pan-European STOXX 600 index fell 1% by 0710 GMT, mirroring an overnight selloff in Wall Street's main indexes. These U.S. indexes experienced their most significant daily percentage declines since early August, weakened by underwhelming manufacturing data.

Early trading saw semiconductor companies as the top losers, with ASML Holdings plunging 5.3%, following a steep decline in Nvidia's stock on Tuesday. British housebuilder Barratt Developments also slid 1.4% after reporting a 56% slump in its annual profit, citing continued sensitivity to mortgage affordability.

Attention now shifts to the euro zone's HCOB services Purchasing Managers' Index at 0800 GMT and July producer prices data at 0900 GMT. Additional Services PMI from Germany, Spain, Italy, and France will also be closely watched later in the day to gauge the region's economic health and interest rate outlook.

(With inputs from agencies.)