European shares pause after sell-off as airlines bounce back

lunes 13 de octubre de 2014 06:48 GYT

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By Blaise Robinson

PARIS, Oct 13 (Reuters) - European stocks paused on Monday following their steep three-week sell-off, with shares in airlines bouncing back as oil prices extended their slide on ample supply.

Air France-KLM gained 3.4 percent and Lufthansa climbed 3.3 percent as Brent crude sank below $88 a barrel, its lowest level in almost four years, after major Middle East producers signalled they would keep output high even if that meant lower prices.

Jet fuel, derived from crude, accounts for around a third of the operating costs of airlines, which means the recent oil price drop - Brent is down nearly 25 percent since mid-June - should be a boon for the sector's earnings.

After falling at the open, the FTSEurofirst 300 index of top European shares pared losses in late morning, and was up 0.04 percent at 1,293.48 points at 1018 GMT.   Continuación...