Title: European shares slide on tighter monetary policy fears

Jun 07, 2022 03:35AM ET

By: AnalysisWatch

European shares fell on Tuesday as optimism about the gradual reopening of the Chinese economy waned and investors worried about the impact of aggressive monetary tightening on global economic growth.

The Reserve Bank of Australia raised interest rates by the most in 22 years and signalled further tightening, while investors are closely watching this week's European Central Bank meeting and US inflation data.

The pan-European STOXX 600 index was down 0.4% by 0709 GMT.

Technology shares were down 0.7%, tracking the decline in US equities overnight. French software maker Assault Systems was at the bottom of the STOXX 600 index after a brokerage downgraded the company's shares.

London's FTSE 100 index was unchanged as the pound slipped.

British Prime Minister Boris Johnson survived a no-confidence vote on Monday and unveiled a series of new policies aimed at strengthening his position among senior ministers.

SAS fell by 11.5% after the Swedish government announced that it would not inject new capital into the loss-making airline and that it did not intend to be a long-term shareholder in the company.