July 6 (Reuters) - European shares slumped nearly 1% on Thursday as heightened concerns about an economic slowdown and further rates hikes globally dented risk sentiment, while an escalating trade battle between China and the United States also weighed.
The pan-European STOXX 600 index (.STOXX) dropped 0.8% by 0717 GMT, led by losses in the construction and materials index (.SXOP), which fell more than 1%.
German industrial orders rose significantly more than expected in May, due to large scale orders of ships, spacecraft and military vehicles.
Embracer (EMBRACb.ST), the top loser in the index, fell 0.8% after the gaming group raised 2 billion crowns ($182 million) in a share issue directed to institutional investors.
Reporting by Matteo Allievi in Gdansk and Shubham Batra in Bengaluru; Editing by Sherry Jacob-PhillipsOur Standards: The Thomson Reuters Trust Principles.
Persons:
Janet Yellen's, Matteo Allievi, Shubham Batra, Sherry Jacob, Phillips
Organizations:
Treasury, Thomson
Locations:
China, United States, U.S, Gdansk, Bengaluru