European shares halt sell-off; Rolls-Royce sinks
PARIS Oct 17 (Reuters) - European stocks rose in early trading on Friday, halting the week's sharp drop after Wall Street pared losses as macro data soothed fears about the U.S. economic outlook.
At 0703 GMT, the FTSEurofirst 300 index of top European shares was up 0.4 percent at 1,250.48 points, after losing 3.7 percent earlier in the week.
But gains looked fragile, and a warning from Rolls-Royce that it would not return to growth next year fuelled worries over corporate profits and sent shares of the British engineering group down 7 percent.
The month-long sell-off in European stocks has prompted U.S.-based investors to slash their exposure to Europe, according to data from Thomson Reuters Lipper.
A Lipper poll of 109 U.S.-domiciled funds invested in European stocks, which include exchange-traded funds' (ETFs) holdings, shows net outflows of $1.3 billion in the seven days to Oct 15, the biggest weekly redemptions since Lipper started to monitor the data in 1992. (Reporting by Blaise Robinson; Editing by Atul Prakash)
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