European Stocks Drop for Third Week on China Risk, Rate Concerns:

- European stocks fell for the third consecutive week

- Concerns over higher interest rates and slowing Chinese economy

- Stoxx 600 Index down 0.6%, hitting its lowest level since July 10

Market Impact:

- Miners, retailers, and real estate stocks fell

- Utilities outperformed

- UK's FTSE 100 dropped 0.7%, nearing correction territory

- Cboe Volatility Index at its highest level since May

Investor Concerns:

- Interest rates remaining higher for longer

- Rising bond yields

- Crisis in China's property sector

- European stocks down 4.9% in August

- Basic resources, autos, and industrials sectors lagging

Outlook:

- Strategists predict Stoxx Europe 600 at 453 points by year-end

- UBS Group AG strategists expect Stoxx 600 to fall 10% by year-end

- Federal Reserve minutes show risk of higher inflation warranting further tightening

- Earnings season results lackluster, raising concerns over profitability pressures