LONDON Feb 6 European equities extended losses
in afternoon trade on Wednesday, weighed down by a string of
disappointments from the earnings season and tracking a move
lower by U.S. stock futures.
Fresh signs of political conflict in the euro zone also
dented sentiment, with signs of disagreement between Germany and
France over the euro exchange rate. The spokesman for
German Chancellor Angela Merkel said on Wednesday that the euro
is not overvalued, thus potentially reducing the chances of any
political intervention to curb an exchange rate which analysts
say could start hurting corporate profits.
The FTSEurofirst 300 was down 0.4 percent at
1,150.17 points by 1322 GMT, having failed to sustain modest
gains printed at the start of the session.
EuroSTOXX 50 was down 1.5 percent, led by
weakness in banking stocks.
"The volumes weren't particularly high this morning and it
just got squeezed a little bit ... and with the Dow futures
turning a bit south as well," said a London-based trader.