European shares hit 13-month low on growth, deflation worries

jueves 16 de octubre de 2014 11:19 GYT

* FTSEurofirst 300 falls 1 pct, hits 13-month low

* Euro zone banking index falls 2.7 percent

* Getinge slumps 15 pct after trimming sales forecast

By Atul Prakash and Blaise Robinson

LONDON/PARIS, Oct 16 (Reuters) - European shares extended steep losses on Thursday on mounting concerns over weakness in the global economy and fears of deflation in the euro zone, sending a benchmark index to a 13-month low at one point.

Cyclical shares, which are more sensitive to economic conditions, were the worst hit. The euro zone's banking index fell 2.7 percent, insurers dropped 2 percent and the construction index was down 1 percent.

At 1442 GMT, the pan-European FTSEurofirst 300 index was also down 1 percent at 1,239.49 points, after touching 1,215.62 earlier, the lowest level since September last year. It has slumped more than 13 percent in just four weeks.

The euro zone's blue-chip Euro STOXX 50 index was down 1.2 percent at 2,857.59 points after falling as much as 2,789.63 earlier in the session.

"The bulk of the options on the Euro STOXX 50 are in a channel between 3,100 points and 2,900 points, so the brokers are forced to dump big bundles of contracts now that the index is below this range, which explains the carnage," KBL Richelieu portfolio manager Pascal Bernachon, said.   Continuación...