European shares fall in late sell-off, miners slip

jueves 25 de septiembre de 2014 11:23 GYT
 

* FTSEurofirst 300 index declines 1 percent

* Miners fall the most as stronger dollar hits metals

* FTSE 100 underperforms on concerns of rate hike

By Atul Prakash

LONDON, Sept 25 (Reuters) - European shares slipped in late trading on Thursday, tracking a sharp sell-off in U.S. stocks, with weaker industrial metals prices on a stronger dollar hurting the mining sector.

The STOXX Europe 600 Basic Resources index fell 2.1 percent to feature as the biggest sectoral decliner in Europe after prices of key base metals fell following a rise in the dollar index, which measures the greenback against a basket of major currencies, to a four-year high.

"The dollar is having its bull run right now and that's causing ripples around the world. Metals prices are getting depressed because of the currency and that is going to have a negative impact on mining companies," Lorne Baring, managing director, B Capital Wealth Managemet, said.

"The larger commodity players might be able to withstand the downward pressure as they have stronger balance sheets but mid-level players are going to be squeezed."

A stronger U.S. currency tends to make dollar-priced metals costlier for the holders of other currencies and lowers demand for the raw materials.   Continuación...