Europe: Shares down, Volkswagen extends losses as probe spreads

[LONDON] European equities retreated early on Tuesday after strong gains in the previous session, with Volkswagen leading the market lower after its emissions-cheating probe spread to Asia.

Volkswagen, which has admitted cheating diesel vehicle emissions tests in the United States, fell 3.3 per cent after South Korea said it would investigate three of its diesel models. Lawmakers on a panel in the US House of Representatives also planned to hold a hearing in coming weeks.

Volkswagen's shares had previously slumped nearly 20 per cent on Monday.

At 0708 GMT, the FTSEurofirst 300 index of top European shares was down 0.3 per cent at 1,407.35 points, after closing 1 per cent higher in the previous session.

REUTERS