European shares slide, poised for biggest loss since June

[LONDON] European shares fell by their most in nearly three months in early deals on Monday, hit by a global sell-off in stocks and bonds as investors fretted over the outlook for monetary policy in the United States.

Shares in the United States and Asian sunk as bond yields rose around the world. Investors fretted over a potential rate rise by the US Federal Reserve next week, as they also questioned whether central bank policy had reached the limits of its effectiveness.

The STOXX 600 was down 1.8 per cent, set for its biggest fall since late June. The growth-sensitive basic resources sector slumped 3.5 per cent, the worst performer on the day, while bank stocks fell 1.9 per cent.

German-listed E.ON was the top faller, down 13 per cent after it spun off its Uniper division, while Linde dropped 7.4 per cent after its Praxair merger fell apart.

REUTERS