Europe shares sag early after disappointing French, German PMIs

lunes 23 de junio de 2014 04:56 GYT

* FTSEurofirst 300 down 0.5 pct, falls from 6-1/2 yr high

* Shares in airlines hit by rise in oil prices

* Euronext slips again; UBS starts with 'sell' rating

By Blaise Robinson

PARIS, June 23 (Reuters) - European stocks fell early on Monday as downbeat readings of euro zone business activity revived worries over the pace of the economic recovery in the single currency bloc.

European airline shares fell, hurt by the rise in oil prices in the wake of the recent conflict in Iraq. Air France-KLM was down 1.9 percent and EasyJet down 2.1 percent.

At 0840 GMT, the FTSEurofirst 300 index of top European shares was down 0.5 percent at 1,388.05 points, retreating from 6-1/2 year high hit last week.

Data compiler Markit said its composite purchasing managers index (PMI) of activity in France's manufacturing and services sectors slipped deeper into contraction territory in May, dampening expectations for a rebound in the euro zone's second-biggest economy.

Separate Markit data showed manufacturing output in Germany, Europe's largest economy, increased at its weakest rate since September and service sector growth also slowed.   Continuación...