European shares logged their biggest one-day loss in nine months on Thursday as interest rate-sensitive sectors were hit by a rising hawkish chorus from central banks globally. The pan-European STOXX 600 index ended 1.3 percent lower, extending falls just before the U.S. market open, while European blue chips fell 1.8 percent. These sectors suffer as growing expectations of rate hikes make their constant dividend flows less attractive. On Tuesday European Central Bank President Mario Draghi indicated that the central bank could begin to tighten monetary policy, though sources said on Wednesday that Draghi had been overinterpreted by markets. Only two sectors, banks and basic resources made any gains, up 0.5 percent and 0.4 percent respectively.

Source: dna June 29, 2017 17:03 UTC