European stock markets down as recession fears mount

European stock markets were lower at mid-morning on Wednesday as investors continued to dwell on the recessionary outlook in the region and as inflationary pressures continue to mount.

The pan-European Stoxx 600 fell 0.6 percent by mid-morning, having recovered some of its earlier losses. Basic resources went down 1.9 percent as most sectors fell into the red, while autos bucked the trend to add 0.7 percent.

Investors are also waiting for the U.S. Federal Reserve to give its summary on current economic conditions, which is also known as the Beige Book, later Wednesday.

The euro increased against the dollar and the British pound Wednesday morning, as the European Central Bank (ECB) prepared for a crucial policy meeting on Thursday.

The ECB is expected to frontload a series of rate increases and sacrifice growth in the region in a bid to curb inflation of 9.7 percent, which is forecast to grow further.

A “jumbo” rate hike of 75 basis points is among possibilities and has been largely priced in by markets, Berenberg analysts told Reuters.