European shares hit by UK rate hike prospects, Iraq turmoil
* FTSEurofirst 300 down 0.2 pct, Euro STOXX 50 down 0.4 pct
* British rate hike prospects hit UK property stocks
* Airlines sink, oil majors rise as Iraq violence boosts oil
By Francesco Canepa
LONDON, June 13 (Reuters) - British property companies led a pullback in European indexes on Friday after the Bank of England (BoE) flagged concerns about loose mortgage lending and raised the prospect of a rate hike.
Violence in Iraq hit broader market sentiment and boosted oil prices, with airline stocks among the worst hit while shares in oil majors gained.
British real estate firms and housebuilders were among the biggest decliners after BoE Governor Mark Carney said mortgage lending practices were becoming looser and interest rates could rise sooner than financial markets expect.
British Land and Land Securities fell nearly 3 percent by 0748 GMT, while airlines easyJet and IAG fell by more than 3 percent as Brent oil futures rose towards $114 a barrel.
The pan-European FTSEurofirst 300 index was down 0.2 percent at 1,389.48 points while the euro zone Euro STOXX 50 fell 0.4 percent to 3,270.37 points, both retreating from this week's six-year highs. Continuación...