European shares slipped on Thursday in thin holiday trading, as the market neared the end of a rough year where it struggled with geopolitical tensions and growing fears of an economic slowdown due to aggressive rate hikes by central banks.
The region-wide STOXX 600 (.STOXX) fell 0.4%. For the year so far, it is down 12.8%.
After a brief jump this week, global markets are nervous about Beijing's move to further relax COVID curbs as surging infections in China dimmed hopes of a swift recovery in the world's second-largest economy.
China-exposed luxury firms such as LVMH (LVMH.PA) and Richemont (CFR.S) weighed on the European index in early trading.
Energy stocks (.SXEP) fell 0.6%, while miners (.SXPP) dipped 0.3%, tracking weakness in commodity prices.
Consumer staples such as Nestle (NESN.S) and L'Oreal SA (OREP.PA) fell 1.2% and 0.5%, respectively.
Novartis AG (NOVN.S) slipped 0.5% after the Swiss drugmaker said it will pay $245 million to resolve civil litigation accusing the company of trying to delay the launch in the U.S of generic versions of the Exforge blood pressure treatment.
