European shares' sell-off gathers steam, periphery underperforms

martes 8 de abril de 2014 11:14 GYT

* FTSEurofirst 300 down 0.6 pct

* Italy's FTSE MIB among worst performing stock indexes

* AB Foods drops as Suedzucker warns on sugar outlook

By Tricia Wright

LONDON, April 8 (Reuters) - European shares fell for a second day on Tuesday as investors sold out of some of the year's top performing regional indexes and stocks on fears the upcoming earnings season will prove sobering.

Markets in the euro zone periphery led losses, with Italy's FTSE MIB index down 1.8 percent in brisk trading volumes. The Milan benchmark has strongly outperformed broad European indexes since the start of the year.

Among individual stocks, Associated British Foods fell 4 percent, with traders citing a read-across to the food and textile retailer's sugar business from a profit warning by German mid-cap sugar producer Suedzucker. Its shares sank nearly 20 percent.

The downbeat news, which followed a similar warning in February by British rival Tate & Lyle, fuelled concerns ABF might have to also cut guidance, traders said, despite strength in its clothes retailing arm Primark.

"(ABF) could take a whack from (its) sugar division, which is about a quarter of its business," said Manoj Ladwa, head of trading at TJM Partners.   Continuación...