European shares sink to 3-1/2 month low in broad sell-off
* FTSEurofirst 300 down 1.4 pct, Euro STOXX 50 down 1.5 pct
* DAX breaks below 200-day moving average
* Rising expectations of early rate hike ahead of U.S. jobs
By Blaise Robinson
PARIS, Aug 1 (Reuters) - European stocks fell on Friday for the third straight session in brisk trade, with a broad index hitting a 3-1/2 month low as tension between Russia and the West as well as concerns around losses at Banco Espirito Santo gnawed at sentiment.
Technical charts sent a strong negative signal on Germany's DAX benchmark, with the index breaking below its 200-day moving average for the first time in two years.
"The situation in Argentina, the problems with Banco Espirito Santo and geopolitical tensions, particularly with Russia, are fuelling this bout of profit taking," Barclays France fund manager Philippe Cohen said.
Argentina defaulted on Thursday for the second time in 12 years following the collapse of last-ditch talks with holdout creditors, raising worries over the outlook for Latin America's No. 3 economy.
Spanish stocks underperformed again on Friday, with Madrid's IBEX dropping 1.9 percent, as traders cited worries over Spanish companies' exposure to Latin America. Continuación...