UPDATE 2-European stocks fall as utilities drag, luxury slides after China data

Reuters

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    * Spain to cap gas price, utilities' profits
    * H&M drops after downbeat earnings
    * Oil stocks among few gainers 

 (Adds comments, updates prices throughout)
    By Sruthi Shankar and Shreyashi Sanyal
    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.  urn:newsml:reuters.com:*:nL8N2QG493
    The utilities sector  .SX6P  tumbled 2.9%, with Europe's
biggest utility, Enel  ENEI.MI  falling more than 5%. Spain's
IBEX  .IBEX  lost 1.7%, the most among regional indexes. 
    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.
 urn:newsml:reuters.com:*:nL4N2QH0XZ
    "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."
    Retail stocks  .SXRP  slipped 2.3% on concerns over the
fresh COVID-19 outbreak in China's Fujian province and signs of
tighter regulations in Macau, the world's largest gambling hub.
 urn:newsml:reuters.com:*:nL1N2QH01D  urn:newsml:reuters.com:*:nL1N2QH01L
    French luxury goods makers LVMH  LVMH.PA  and Kering
 PRTP.PA  fell over 4% each. 
    "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.  urn:newsml:reuters.com:*:nL8N2QH181 
    Fashion retailer H&M  HMb.ST  fell 3.1% as quarterly sales
increased less than expected, while Zara owner Inditex  ITX.MC 
slipped 1.3% even as sales approached pre-pandemic levels.
 urn:newsml:reuters.com:*:nL8N2QH15P  urn:newsml:reuters.com:*:nL8N2QH0UO
    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.
 urn:newsml:reuters.com:*:nL1N2QH0B4
    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%.
 urn:newsml:reuters.com:*:nL4N2QG3WI
    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.  O/R 

 (Reporting by Sruthi Shankar and Shreyashi Sanyal in Bengaluru;
Editing by Shounak Dasgupta and Emelia Sithole-Matarise)
 ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961
144 3740; Twitter: https://twitter.com/s_shreyashi;))

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