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


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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
    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.
    "The headlines continue to deter foreign investor interest
back into Beijing," said Edward Moya, senior market analyst at
    "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
    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.
    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%.
    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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