Sinking travel sector pegs back European shares

miércoles 11 de junio de 2014 04:14 GYT

* FTSEurofirst 300 falls 0.3 pct

* Deutsche Lufthansa profit warning sees selling of airlines

* H&M, Inditex, Sainsbury boost retail sector

* European indexes drop back from "overbought" territory

By Alistair Smout

EDINBURGH, June 11 (Reuters) - European stocks turned negative on Wednesday after a profit warning from German airline Deutsche Lufthansa rocked the travel and leisure sector.

Deutsche Lufthansa fell 10.6 percent, the top faller on the FTSEurofirst 300, after saying weaker-than-expected revenues in its passenger and freight business meant it would miss its profit target.

The fall weighed on the whole travel and leisure sector , which shed 1.1 percent, making it the biggest sectoral faller as other airlines retreated on the news.

"The market quickly looks for read-across, and easyJet is already down 40 pence. In a low volume environment, short-term traders will be looking for that read-across and having an impact on the share price," Zeg Choudhry, head of equities trading at Northland Capital, said.   Continuación...