Inflation threat deepens European equity sell-off
05/02/2018 08:00
LONDON, Feb 5 (Reuters) - European stocks suffered a sharp
sell-off at the open on Monday, tracking big drops in Asia as
growing inflation expectations and rising bond yields took their
toll on equity markets.
Europe's STOXX 600 .STOXX sank 1.1 percent, in line with
euro zone stocks .STOXXE and on track for its sixth straight
day of decline. The pan-European index hit a two-month low in
early dealing, having given back all the gains it made in the
exuberant new year rally.
Among major European equity markets, only Spain and Italy
are still higher than at the turn of the year, with the UK the
worst performer.
All sectors were in the red on Monday, but the sell-off hit
the highest valued parts of the market hardest, with tech stocks
.SX8P falling 1.6 percent.
Chipmaker AMS AMS.S , one of the best-performing European
stocks last year, fell 4.5 percent. Siltronic WAFGn.DE tumbled
3.7 percent while BE Semiconductor BESI.AS fell 3 percent.
Results also weighed on some stocks. Ryanair RYA.I fell
3.5 percent after the airline struck a cautious tone about fares
and potential disruption from pilot unions, though it reported
rising profits. urn:newsml:reuters.com:*:nL8N1PV0VB
Travel and leisure stocks .SXTP were among the
worst-performing, down 1.3 percent as shares in airlines Air
France AIRF.PA , easyJet EZJ.L , IAG ICAG.L and Lufthansa
LHAG.DE fell.
Fiat Chrysler FCHA.MI fell 2.7 percent after sources told
Reuters late on Friday that the U.S. Justice Department was
seeking "substantial" fines in the emissions case against the
Italian carmaker. urn:newsml:reuters.com:*:nL2N1PS26I
A downgrade to "sell" from DNB drove Hexpol HPOLb.ST
shares down 5 percent, the worst-performing company on the STOXX
index.
(Reporting by Helen Reid; editing by Tom Pfeiffer)
((Helen.Reid@thomsonreuters.com; +44 20 7542 0402;))
Keywords: EUROPE STOCKS/