European shares hit 1-month low in late sell-off, miners slip

jueves 25 de septiembre de 2014 12:58 GYT
 

* FTSEurofirst 300 index ends 0.9 percent lower

* Miners fall the most as stronger dollar hits metals

* Weaker euro seen helping European exporters

By Atul Prakash

LONDON, Sept 25 (Reuters) - European shares slipped to a one-month low in late trading on Thursday, tracking a sell-off in U.S. stocks, as a stronger dollar undercut prices for industrial metals, causing mining shares to drop.

The STOXX Europe 600 Basic Resources index fell 2 percent, making the sector the biggest decliner in Europe, as the prices of key base metals fell sharply following gains by the dollar index, which measures the U.S. currency against a basket of major currencies.

Miners Rio Tinto and BHP Billiton fell 2.4 percent and 2.9 percent respectively. Contributing to the loss was a drop in China's steel futures to a record low. That put more pressure on prices of iron ore, which have lost about 41 percent this year.

"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," said Lorne Baring, managing director, B Capital Wealth Management.

"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."   Continuación...