European Shares Plunge Amid Global Market Hesitations

European shares experienced a notable decline, hitting their lowest levels in over two weeks as global markets exhibited a cautious stance. The STOXX 600 index dropped 0.3%, closing at 570.58 points, after seeing a decline of up to 1.6% during the day. While most major regional bourses ended in the red, the UK's FTSE 100 and Italy's benchmark index managed slight gains of 0.1% each.

This downturn follows a fading tech-driven rally, compounded by warnings from top Wall Street banks about a potential market correction of 10% to 15%, pointing to concerns over high equity valuations. Richard Flax of Moneyfarm highlighted that while these concerns stem from the U.S., they're influencing European risk sentiment as well, even though European valuations aren't as elevated.

Basic resources sectors led declines with a 2% fall, mainly tracking weak copper prices, while tech stocks declined by 1%. Meanwhile, healthcare stocks saw some gains with a rise of 0.8%. Corporate earnings are in focus, and the ongoing U.S. government shutdown is clouding the Federal Reserve's interest rate outlook. Swedish Riksbank's upcoming policy decision is keenly awaited.