PARIS Feb 4 European shares sank in early trade
on Tuesday, retreating for the seventh time in nine sessions and
tracking a sell-off on Wall Street and in Asia sparked by
lower-than-expected U.S. manufacturing data.
At 0806 GMT, the FTSEurofirst 300 index of top
European shares was down 0.6 percent at 1,265.95 points. The
index has lost 6.5 percent since a peak on Jan. 21, its sharpest
pull-back in seven months.
"In Europe, the slide to two-month lows seems impossible to
stop. The enthusiasm of the dip buyers is gone and people are
moving to the sidelines for now," said Guillaume Dumans, co-head
of research firm 2Bremans.
Figures showed on Monday U.S. manufacturing grew at a slower
pace in January as new order growth plunged by the most in 33
years. The data pointed to some loss of steam in the world's
biggest economy and sent U.S. benchmark stock indexes down more
than 2 percent on the day.
The sell-off spread to Asia, with Tokyo's Nikkei index
plummeting 4.2 percent, its biggest one-day percentage
decline since June 2013. After a stellar performance in 2013,
the Nikkei is down 14 percent so far this year.
Swiss lender UBS bucked the trend on Tuesday,
rising 3.1 percent after posting a larger-than-expected