European shares sink as oil slump fuels deflation fears

lunes 15 de diciembre de 2014 12:34 GYT
 

PARIS Dec 15 (Reuters) - European shares tumbled again on Monday, resuming last week's sharp sell-off as the relentless drop in oil prices hurt energy shares and fuelled fears of deflation in the euro zone.

The FTSEurofirst 300 index of top European shares provisionally ended 2.3 percent lower at 1,291.66 points, after sinking 5.9 percent last week.

"The drop in oil would normally be good news for the European economy, but in this case, it's actually bad news because it seriously raises the risk of deflation," said Christian Jimenez, fund manager and president of Diamant Bleu Gestion, in Paris.

ECB governing council member Ignazio Visco said on Monday that oil price declines will weigh on already-low inflation in the euro area in coming months. (Reporting by Blaise Robinson; Editing by Sudip Kar-Gupta)