European shares capped by Fed hike worries; M&A boosts telecoms
* Euro STOXX 50 down 0.3 pct, FTSEurofirst 300 flat
* Oil stocks, gold miners fall as dollar strengthens
* Telecom Italia lead gains in telecoms on Brazilian bid speculation
By Francesco Canepa
LONDON, Sept 9 (Reuters) - European shares slipped for a third straight session on Tuesday, weighed down by companies which trade dollar-denominated commodities such as oil, as investors shortened the odds on an early hike in U.S. interest rates.
Research from Federal Reserve economists published late on Monday showed Fed members expect a higher trajectory for interest rates than investors are pricing in, boosting bond yields and sending the dollar to a 14-month high against the euro.
The euro zone blue-chip Euro STOXX 50 index fell 0.3 percent to 3,259.47 points.
The FTSEurofirst 300 index of European shares was flat at 1,390.21 points. The index has been retreating from a 6-1/2 year high hit on Thursday, at the peak of a four-week rally.
"As the bond markets all gently back up in yield, the equities look round wondering where the prop was that they were resting on," Andy Ash, head of sales at Monument Securities, said. Continuación...