Europe shares track Wall St sell-off; Holcim, Lafarge surge

lunes 7 de abril de 2014 04:15 GYT
 

* FTSEurofirst 300 down 1.1 pct, Euro STOXX 50 down 0.7 pct

* Surge in volatility index signals rise in risk aversion

* Holcim, Lafarge climb after confirming merger deal

By Blaise Robinson

PARIS, April 7 (Reuters) - European stocks dropped in early trading on Monday, halting a three-week rally and tracking a sell-off on Wall Street on Friday where a number of high-growth companies mostly in the tech and biotech sectors tumbled.

Losses were cushioned, however, as M&A activity in Europe fuelled hopes of some more consolidation.

At 0749 GMT, the FTSEurofirst 300 index of top European shares was down 1.1 percent at 1,338.20 points, slipping from a 5-1/2 year high hit on Friday.

The Nasdaq Composite sank 2.6 percent in New York on Friday as tech and biotech shares sank. The sell-off was not a surprise, said Aurel BGC chartist Gerard Sagnier, as following their recent rally, indexes have been stalled by long-term technical resistance levels.

"This could be the start of a 'profit taking' consolidation period. People should buy only when the pull-back is done, while it could also be time to hedge the portfolios," he said.   Continuación...