LONDON, Nov 15 (Reuters) - European equities extended losses
on Thursday, echoing a sharp decline overnight on Wall Street,
as the rising threat to global growth from the U.S. and Europe
prompted investors to reduce their exposure to risky assets.
By 0704 GMT, the FTSEurofirst 300 was down 6.42
points, or 0.6 percent at 1,082.01, having fallen 1 percent on
Wednesday, while the euro zone blue chip index fell
0.6 percent to 2,457.77.
Equities fell as U.S. politicians readied themselves for a
tough battle over the 'fiscal cliff' of some $600 billion in
automatic tax hikes and spending cuts, and ahead of data which
is expected to show the euro zone slipped back into recession.
"The global economy faces some severe headwinds. Against
that backdrop we see short-term de-risking of portfolios," Abi
Oladimeji, head of investment strategy at Thomas Miller
He said the pressures being placed on the global economy in
particular from the euro zone and United States, combined with
overly bullish investor sentiment in the summer and volatility
-- a crude gauge of investor fear -- recently being at
multi-year lows made a pretty convincing case for reducing
allocations in equities.
With investors seeking safer havens against the backdrop of
economic uncertainty, riskier basic resource stocks --
demand for which is acutely tied to the performance of the
broader economy -- were early big fallers, down 1.1 percent.