June 30, 2017 / 7:31 AM / 21 days ago

European shares set for worst month in one year

2 Min Read

MILAN, June 30 (Reuters) - European shares were flat in early deals on Friday but were set to end June with their biggest monthly loss in one year as worries over tightening monetary conditions soured the mood.

The pan-European STOXX 600 index was unchanged by 0718 GMT, while euro zone blue chips inched 0.1 percent higher and the UK'S FTSE 100 fell 0.3 percent.

The STOXX is down more than 2 percent so far in June, following four straight months of gains due to easing political worries in the euro zone and brightening economic prospects.

But hawkish remarks from central bankers this week that boosted bond yields and the euro sparked a broad sell-off, with stocks that benefit from lower rates and export-oriented companies particularly under pressure.

Sectoral moves were muted on Friday with the oil and gas index posting the biggest decline, down 0.6 percent, while banks, which instead benefit from higher rates, rose for the fifth day in a row.

The top faller on the STOXX was UK pub retailer Greene King , down 6.6 percent following a downgrade to neutral from JP Morgan, while oilfield services firm Subsea 7 rose 4.1 percent after an acquisition. (Reporting by Danilo Masoni, editing by Kit Rees)

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