European shares slide 1% on global growth, taper worries By Reuters
(Reuters) – European shares sank 1% to a near two-month low on Monday, tracking Asian equities lower, as investors feared major central banks would start giving cues about tapering their pandemic-era stimulus programmes at various meetings this week.
The pan-European index was down 1.4% by 0706 GMT, with energy and mining stocks leading declines on a slide in commodities prices. [O/R] [MET/L]
Three consecutive weeks of falls in the benchmark European stocks index have been caused by concerns about global slowing and the potential spillover effects from Chinese companies being more tightly regulated.
This week’s U.S. Federal Reserve policy meeting will be the focus. It is scheduled for Tuesday and Wednesday. There, the central bank should lay the foundations for a tapering. The Bank of England will hold its policy meeting on Thursday.
German shares fell 1.6% after data revealed a larger-than-expected increase in producer prices.
The benchmark German index, which has undergone its largest ever overhaul, began trading Monday. It saw a rise in constituents from 30 to 40.
Lufthansa’s shares fell 0.6% as it said that it plans to raise 2.14 Billion Euros ($2.51 Billion) in order to pay part of the bailout Germany’s most important airline got during the coronavirus crisis.
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