Live Markets: STOXX near 4-month low, Paris down 12% from August record
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STOXX NEAR 4-MONTH LOW, PARIS DOWN 12% FROM AUGUST RECORD
European shares are down sharply for a second day on Thursday as a fresh surge in oil prices pushed bond yields higher, fuelling concerns about euro zone sovereign spreads and the region's fiscal outlook.
While borrowing costs remain a touch below recent multi-year peaks, the strain is beginning to show up in equities, with several benchmarks approaching key technical levels as investors lock in gains from recent winners like banks and tech.
The pan-European STOXX 600 .STOXX fell 0.9% to a near four-month low, while banks .SX7P slid 2% to their weakest level in more than three months as higher yields revived concerns about potential losses on sovereign debt holdings.
France's CAC 40 .FCHI dropped to its lowest level in more than six months, leaving it about 12% below its August record high. The Euro STOXX 50 .STOXX50E was testing its 200-day moving average, a closely watched gauge of the market's long-term trend.
Needless to say, oil and gas .SXEP were firmly in the black, up 0.9%.
(Danilo Masoni)
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EARLIER ON LIVE MARKETS:
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