German stocks declined on Wednesday, continuing the losses from the previous session, as investors expressed concerns over faltering U.S. and Chinese growth.
The U.S. manufacturing sector's economic activity contracted in August for the fifth month in a row and for the 21st time in the last 22 months. This persistent downturn has fueled worries that the world's largest economy may be heading toward a recession.
Meanwhile, a private survey indicated a slowdown in China's services sector activity in August despite the peak travel season during the summer.
The benchmark DAX index fell by 122 points, or 0.7%, to 18,624, following a 1% drop the day before.
In corporate developments, shares of Commerzbank AG decreased by 1.7%. According to a Bloomberg report, the German government is planning to sell a stake of between 3% and 5% in the bank.
