Europe: Stocks sink further at open

[LONDON] Europe's major stock markets extended losses at the open on Friday, hit by fears over tighter monetary policy and lingering concern of a possible US debt default.

Sentiment was also dogged by growing worries over the economic recovery, particularly in China, and high inflation.

In initial trade, London's benchmark FTSE 100 index lost 1.1 per cent to 7,006.55 points, compared with Thursday's close.

In the eurozone, Frankfurt's DAX index shed 1.5 per cent to 15,028.76 points and the Paris CAC 40 dropped 1.4 per cent to 6,427.48.

"The litany of current woes which have beset investors continues to grow," said Interactive Investor analyst Richard Hunter.

"Aside from the Federal Reserve tapering programme, further evidence of slowing growth in China and elevated inflation on both sides of the pond, additional concerns are appearing as the US considers its debt ceiling actions and whether to proceed with the President's proposed infrastructure spending plan."

News that US lawmakers had finally passed legislation to avert a costly government shutdown did little to allay concerns about the fact that they are unable to agree a deal to raise the debt limit.

AFP