Europe: Shares slide as Fed's hawkish tone hits miners, bank stocks

[BENGALURU] European shares fell on Monday as mining and bank stocks bore the brunt of a surprise shift in the US Federal Reserve's stance on monetary policy last week.

The pan-European Stoxx 600 index was down 0.6 per cent at a more-than-two-week low by 7.04am GMT.

The index snapped a four-week winning streak on Friday after the Fed signalled it could raise interest rates much sooner than expected.

Mining stocks fell 1.7 per cent to track a slump in metals prices, while banking shares lost 1.3 per cent as investors booked profits after a run that has lifted them more than 20 per cent this year.

Focus later in the day will be on a speech by European Central Bank President Christine Lagarde to the European Parliament.

In company news, Italian-American vehicle maker CNH Industrial slipped 1.3 per cent after agreeing to a deal to buy Raven Industries at an enterprise value of US$2.1 billion.

REUTERS