European shares fell on Thursday following warnings from German car maker Daimler.
The STOXX 600 index fell 0.1% with a 0.2% decline in German stocks.
German economic data show the country's economy has not entered a recession, however, it is still close to zero and this is bad news for the euro zone.
Chris Bailey, European strategist at Raymond James, commented: “Clearly, either side of zero is not great. It doesn’t indicate a strong German economy. The thoughts now are to what extent will you see the German authorities stimulate their economy.”
Daimler's warning led the European car index to fall 1%, the highest drop among the major sectors.