(Updates with closing prices, flow data)
* FTSEurofirst 300 down 1.4 pct, loses 3 pct in week
* High-beta banking stocks also hit
* Despite pull-back, European equities enjoy further inflows
By Blaise Robinson
PARIS, April 11 European stocks sank on Friday,
extending the week's retreat and mirroring a sell-off on Wall
Street led by technology and biotech shares that has been
fuelled by worries some stock valuations are overstretched.
European tech shares were among the most hit, with ARM
, whose chip designs feature in smartphones such as
Apple's iPhones, falling 4.5 percent.
ASML, the world's biggest manufacturer of tools
for the semiconductor industry, dropped 3.5 percent, telecom
gear maker Alcatel-Lucent lost 2 percent and chip
maker Infineon fell 2.9 percent.
"There's been contagion from the correction in the U.S.
which is probably not over, but the fact is, this is mostly a
U.S. correction," said David Thebault, head of quantitative
sales trading at Global Equities in Paris.
"People are getting out of overvalued sectors and looking
for bargains elsewhere. The market's positive longer-term trend
is still intact, this pull-back will just remove the froth."
European tech stocks have been trading at a premium to the
overall market, but unlike peers on Wall Street, valuations have
The STOXX Europe 600 tech index trades at about 20
times expected earnings, according to Thomson Reuters data,
cheaper than the health care, industrials, travel and leisure,
and construction sectors.
The FTSEurofirst 300 index of top European shares
ended 1.4 percent lower at 1,312.92 points, posting a weekly
loss of 3 percent.
On Thursday, the Nasdaq suffered its biggest drop in 2 1/2
years, losing 3.1 percent, with the Nasdaq biotechnology index
sinking 5.6 percent.
"We've recently taken a little bit out of equities," said
Veronika Pechlaner, who helps manage $13 billion of assets at
"During the first quarter, when the market came back
strongly, we decided to lock in some of our gains that we made
in a good fourth quarter. It might be a little bit early to talk
about redeploying that."
European banking shares, which have been more volatile than
the broad market in recent years, also featured among the top
losers on Friday, with Bankinter down 2.3 percent and
Natixis down 2.7 percent. The STOXX Europe 600 banking
index lost 4.3 percent on the week.
Despite the week's pull-back, European equities saw inflows
from U.S. investors in the seven-day period ended April 9, data
from Thomson Reuters Lipper showed.
A Lipper poll of 102 U.S.-domiciled funds invested in
European stocks, which include exchange-traded funds' (ETFs)
holdings, showed inflows of $252 million, a rise from the
previous week's inflows of $190 million.
Since the start of the year, European stocks have enjoyed
brisk inflows from U.S. investors, with 13 weeks of net inflows
and only one week of net outflows.
Europe bourses in 2014: link.reuters.com/pap87v
Asset performance in 2014: link.reuters.com/gap87v
Today's European research round-up
(Additional reporting by Alistair Smout; Editing by James