By Steve Goldstein
European stocks slumped on Thursday, as luxury-goods makers dived on worries over China’s efforts to tackle income equality, with mining stocks losing ground after minutes from the last Federal Reserve interest-rate-setting committee indicated it was soon going to start reducing the rate of bond purchases.
The Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP +0.63% fell 1.5% to 467.24, in the first opportunity for investors in Europe to react to the Fed news.
Of the major regional indexes, the German DAX /zigman2/quotes/210597999/delayed DX:DAX +0.63% skidded 1.3%, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +0.73% slumped 2.4% and the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.51% slumped 1.5%.
The Stoxx Europe 600 basic resources index /zigman2/quotes/212670217/delayed XX:SXPP +0.70% dropped nearly 5% as iron-ore and other key metals declined in value.
The luxury-goods sector was in retreat, on worries over China’s crackdown on the wealthy . Kering /zigman2/quotes/204653408/delayed FR:KER +1.16% fell 9%, and LVMH Moet Hennessy /zigman2/quotes/201350549/delayed FR:MC -0.14% dropped 6%.
U.S. stock market futures /zigman2/quotes/209948968/delayed ES00 +0.43% , at the time of the European close, were struggling to find positive territory.