European shares resume sell-off; BG sinks

PARIS Mon Jan 27, 2014 3:19am EST

PARIS Jan 27 (Reuters) - European stocks fell in early trade on Monday, resuming last week's selloff as nagging concerns over China's growth pace and volatility in emerging market currencies continued to spook investors.

With the U.S. Federal Reserve expected to stick to its planned programme of stimulus reduction this week, investors fear further turbulence in emerging markets, fuelling a bout of profit taking on European stocks with big exposure to those regions.

Fed policymakers are seen agreeing on another $10 billion cut to the central bank's monthly bond purchases at the Jan. 28-29 meeting.

At 0808 GMT, the FTSEurofirst 300 index of top European shares was down 0.4 percent at 1,296.53 points, a level not seen since late December. The index is down nearly 4 percent in three sessions.

"Sudden fears about emerging markets and also potential capital shortfalls for some European banks are rattling investors. People have been a bit complacent lately, so it's quite logical to get a correction," said David Thebault, head of quantitative sales trading, at Global Equities.

Shares in UK energy group BG dropped 12 percent after warning that production this year and next would fall short of expectations.

Vodafone fell 5.7 percent after U.S. mobile operator AT&T said it was not planning to take over the British group.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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