European shares sharply lower as Volkswagen dives; miners down
* FTSEurofirst 300 index down more than 2 pct
* Volkswagen falls 17 pct as probe spreads
* Miners among top fallers as metals prices plunge
* Outokumpu hit by profit warning
By Atul Prakash and Danilo Masoni
LONDON/MILAN, Sept 22 (Reuters) - European equities fell sharply on Tuesday, with Volkswagen plunging to four-year lows and basic resources firms facing a sell-off after copper prices took a hit on concerns about a global surplus of the industrial metal.
Shares in Volkswagen wiped off more than one-fifth of their value at one point after slumping nearly 19 percent the day before, as an investigation into possible cheating over emissions tests spread to Asia.
Volumes in the stock were three times the 90-day average and the dive dragged lower the whole European auto sector. South Korea said it would investigate three of its diesel models, while U.S. lawmakers also planned to hold a hearing on its emissions from diesel vehicles in coming weeks.
"We would continue to avoid the auto sector as this issue has the potential to roll-on and it's more likely than not to involve more than just one original equipment manufacturing," brokerage Aviate Global wrote in a note. Continuación...