European shares sink to 8-month low on growth jitters

martes 14 de octubre de 2014 07:15 GYT

* Pan-European FTSEurofirst 300 falls 0.9 percent

* German investor morale lowest in almost 2 years

* Banks, luxury goods stocks fall sharply

By Atul Prakash

LONDON, Oct 14 (Reuters) - Europe's benchmark share index slipped to an eight-month low on Tuesday on growing concerns about the pace of global growth, as a survey showed German investor morale has plunged to its lowest in almost two years.

Think tank ZEW's monthly survey of German economic sentiment tumbled for a 10th straight month to -3.6, the weakest reading since November 2012, suggesting Europe's largest economy was reeling from crises abroad and a weak euro zone.

"The survey further confirmed the stagnation in Europe, which is building on a negative sentiment that has already been growing with previous data points. We are cautious on Europe and therefore very cautious on cyclicals such as banks," said Lorne Baring, managing director of B Capital Wealth Management.

"Investors are pricing in continued bad data prints across Europe. But a weaker euro, QE (quantitative easing) prospects and cheap valuation of blue-chip, export-led stocks in Europe might provide a base for a share rebound."

Germany's DAX index fell 0.9 percent in a broader market sell-off, taking its recent losses to about 12 percent in less than four weeks. France's CAC was down 1.1 percent while Italy's FTSE MIB index dropped 1.4 percent.   Continuación...