European shares drop on disappointing economic data

martes 23 de septiembre de 2014 07:53 GYT

* FTSEurofirst 300 down 1.3 pct, extends Monday's sell-off

* Raiffeisen Bank sinks after warning on Ukraine, Hungary

* French PMIs, German PMIs rattle investors

* New U.S. tax rules hit European pharma stocks

By Atul Prakash and Blaise Robinson

LONDON/PARIS, Sept 23 (Reuters) - European shares pulled back for a second day on Tuesday after data showing a further contraction in French business activity in September rattled investors.

Shares in Austria's Raiffeisen Bank International, down 12 percent, were the biggest faller in the FTSEurofirst 300 index, after the lender said hits from Ukraine and Hungary will probably push it to its first-ever annual loss this year.

France's CAC 40 share index underperformed after Markit data showed business activity in the euro zone's second-biggest economy contracted this month due to a weaker-than-expected services sector.

The CAC index was down 1.7 percent at 1114 GMT, while the FTSEurofirst 300 index was 1.3 percent lower at 1,375.73 points, after falling to a one-week low. The pan-European index lost 0.6 percent on Monday.   Continuación...