European shares slip again as selling pressure resumes

jueves 16 de octubre de 2014 04:38 GYT

* FTSEurofirst 300 down 0.2 pct, reverses early rebound

* Greek assets under pressure again

By Blaise Robinson

PARIS, Oct 16 (Reuters) - European shares reversed an early rebound and slipped again on Thursday morning, resuming their month-long sell-off as worries over the strength of the global economy and fears of deflation in the euro zone kept investors on edge.

At 0820 GMT, the FTSEurofirst 300 index of top European shares was down 0.2 percent at 1,249.39 points, after gaining as much as 1 percent at the open.

The index sank 3.2 percent on Wednesday, suffering its biggest one-day slide since late 2011. The slump represented a wipe-off in market value of about $255 billion for European stocks listed on the broad STOXX Europe 600 index, more than the GDP of Portugal.

"We have a 'sell' position on the market in the short term," Aurel BGC analyst Gerard Sagnier said. "European indexes have confirmed the correction movement. The panic, coupled with stop losses, is exacerbating the pull-back."

Southern European markets were the most hit on Thursday, with Spain's IBEX down 1.4 percent, Italy's MIB down 1.1 percent and Portugal's PSI 20 down 1.5 percent.

The acceleration of the 'risk-off' trade in the last few days was also visible in other asset classes, with investors cutting exposure to the most risky assets, such as Greek bonds.   Continuación...