European shares fall, Tesco slumps after overstating profit

LONDON, Sept 22 Mon Sep 22, 2014 3:15am EDT

LONDON, Sept 22 (Reuters) - European equities retreated from highs on Monday, with concerns about the pace of Chinese economic growth hurting miners while Tesco dragged retailers lower after further lowering its first-half profit forecast.

Tesco fell 10.7 percent, the top decliner in the pan-European FTSEurofirst 300 index, after cutting its forecast by 250 million pounds ($408.50 million), its third warning this year, after finding a fault in its accounts.

On the sectoral level, the STOXX Europe 600 Basic Resources index, down 2.2 percent, was the biggest decliner on concerns that flash manufacturing PMI reading from China, the world's biggest metals consumer, could come in below the 50 level on Tuesday, indicating that manufacturing activity is contracting.

The FTSEurofirst 300 index was down 0.5 percent at 1,394.66 points by 0711 GMT, after hitting a 6-1/2-year high on Friday. (Reporting by Atul Prakash; Editing by Sudip Kar-Gupta)

 
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