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Europe shares hit near 6-month lows in huge volumes

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Reuters PARIS
Last Updated : Jun 21 2013 | 9:35 PM IST

PARIS (Reuters) - European shares tumbled on Friday in strong volumes, hitting near six-month lows, as concerns about the prospect of reduced U.S. monetary stimulus continued to rock financial markets worldwide.

The FTSEurofirst 300 index of top European shares provisionally ended 0.7 percent lower at 1,136.38 points, a level not seen since early January.

Trading volume was brisk, boosted by the expiry of monthly and quarterly options and futures, which exacerbated volatility during the session.

"We're at a turning point, and it has come earlier than what investors had expected. Liquidity has now become the major focus for markets," said Roland Kaloyan, global asset allocation strategist, at Societe Generale CIB.

European stocks started to tumble on Thursday after U.S. Federal Reserve Chairman Ben Bernanke confirmed the Fed would begin winding down its quantitative easing programme later this year, fuelling a sell-off in equities around the world as well as in fixed income markets and commodities.

On the week, the FTSEurofirst 300 dropped 3.4 percent, the index's biggest weekly loss in more than a year.

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Tech shares were among the hardest hit, with German business software maker SAP down 2.9 percent after U.S. rival Oracle posted worse-than-expected revenues for the second quarter in a row.

(Reporting by Blaise Robinson; Editing by Sudip Kar-Gupta)

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First Published: Jun 21 2013 | 9:24 PM IST

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