European shares lower as China hike rate weighs

FRANKFURT, Dec 27 (BestGrowthStock) – European stocks halted their
December rally on Monday and opened lower, as China’s interest
rate hike over the weekend revived tightening concerns, amid
thin trading volumes as UK markets remain closed.

“Christmas holidays are over and probably the most
remarkable news during Christmas came from China which raised
interest rates for the second time since mid-October to counter
the fastest inflation in more than two years,” traders at
Frankfurt-based Close Brothers said.

At 0807 GMT, the FTSEurofirst 300 (.FTEU3: ) index of top
European shares was down 0.7 percent at 1,139.49 points after
winning 0.1 percent in the previous session. The index has
gained 7.5 percent in December and is still on track for its
biggest monthly gain since July 2009.

Close Brothers expects trading this week to be calm as many
institutional investors have closed the books for the year.
“This implies low trading volumes, like last week, bearing
potential risk of large swings in either directions,” they said
adding that they still expect markets to post double-digit
increases for the year.

(Reporting by Harro ten Wolde)

European shares lower as China hike rate weighs