LONDON, June 13 European shares sold off again
on Thursday with banks and commodity stocks, sectors most
exposed to the broader economic fortunes, the top fallers on
concerns about stimulus unwinding and Greek political
By 0705 GMT, the FTSEurofirst 300 was down 18.30
points, or 1.6 percent at 1,156.49, led by miners down 2
percent and banks down 1.8 percent.
The broader index has fallen nearly 8 percent since mid-May
and was just 13 points off retracing the gains enjoyed since
mid-April, in a sign of how reliant and sensitive markets have
become to monetary policy.
Worries over the political stability in Greece reared their
head again, although Peel Hunt's equity strategist Ian Williams
said the concerns over when stimulus withdrawal will occur in
the United States remained the key focus for investors.
"Low volumes and high volatility will remain the order of
the day at least until next week's FOMC (Federal Open Market
Committee) meeting, with technical considerations set to
dominate," he said.
The FTSEurofirst 300 has crashed through the 61.8 percent
Fibonacci retracement of the rally that began in mid-April and
topped out in mid-May, with the next level of real support being
the 200-day moving average around 1,155.