Growth in Europe's leading economies Germany and France is worrying investors as manufacturing data indicate a sharp deceleration in June. PMIs data showed manufacturing output in the two economies fell more than expected. Economists commented Germany's economy lost all momentum gained from the easing of Covid restrictions. Surging concerns on the economic outlook and soaring interest rates are causing a halt in the momentum. The Stoxx50 fell 1.3%, while German 10-year yields fell 15bps to 1.48%, a sharp retreat from 1.78% on Monday, factoring recession fears.