European shares hit by fresh bout of stimulus worry
LONDON, June 11
LONDON, June 11 (Reuters) - European shares fell to six-weeks lows on Tuesday on fresh concern that central bank support for markets was turning more cautious, and some expected further weakness in the near term.
The pan-European FTSEurofirst 300 index provisionally closed down 1.2 percent at 1,179.40 points, marking its lowest close since ending at 1,155 points on April 22 albeit off the intraday low.
The euro zone's blue-chip Euro STOXX 50 index also fell, down 1.2 percent to 2,686.27 points. Euro zone government bond yields, meanwhile, rose across the board.
Traders cited disappointment at an overnight decision by the Bank of Japan against fresh measures to calm its bond markets, while persistent worries that the U.S. Federal Reserve may soon scale back its stimulus programme also hit markets.
"It's getting more serious by the day. Bond yields are creeping up, and that's having an adverse effect on equities," said XBZ European equity options broker Mike Turner.
"Technically, I think there's more downside to go. On the Euro STOXX, we could fall another 2 percent to 2,600 fairly easily," he added.
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