European shares reverse early rebound and drop again

PARIS: European shares reversed an early rebound and dropped again on Thursday morning, resuming their month-long sell-off as worries over the strength of the global economy and fears of deflation in the euro zone kept investors on edge.

At 0750 GMT, the FTSEurofirst 300 index of top European shares was down 0.3 percent at 1,248.65 points, following on from a 3.2 percent slump on Wednesday.

"We have a 'sell' position on the market in the short term," Aurel BGC analyst Gerard Sagnier said. "European indexes have confirmed the correction movement. The panic, coupled with stop losses, is exacerbating the pull-back.