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European Shares Drop on Inflation Risk Concerns

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European shares fell on Monday as concerns over the risk of higher inflation due to a jump in commodity prices tempered optimism around a vaccineled economic recovery.

The panEuropean STOXX 600 index was down 0.7 by 0810 GMT, led by declines in technology companies and food and beverage stocks.

Germanys benchmark stock index dropped the most among its European peers, down 1.1.

Europe will decide whether to extend the suspension of its rules limiting budget deficits and debt, known as the Stability and Growth Pact SGP, in coming weeks, the Commissioner for Economy Paolo Gentiloni said.

Britains FTSE 100 dropped 0.4, as Prime Minister Boris Johnson plots a path out of COVID19 lockdowns in an effort to gradually reopen the battered economy.

All eyes will be on European Central Bank President Christine Lagardes speech on stability, economic coordination and governance in the EU later in the day.

In company news, French car parts maker Faurecia lost 1.5 even after it targeted its sales close to 25 billion euros 30.29 billion and an operating margin above 8 of sales by 2025.

Reporting by Shashank Nayar in Bengaluru; Editing by Sriraj Kalluvila

Source Reuters

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