European shares sink again; UBS rallies

Reuters - UK Focus

PARIS, Feb 4 (Reuters) - European shares sank in early tradeon Tuesday, retreating for the seventh time in nine sessions andtracking a sell-off on Wall Street and in Asia sparked bylower-than-expected U.S. manufacturing data.

At 0806 GMT, the FTSEurofirst 300 index of top European shares was down 0.6 percent at 1,265.95 points. Theindex has lost 6.5 percent since a peak on Jan. 21, its sharpestpull-back in seven months.

"In Europe, the slide to two-month lows seems impossible tostop. The enthusiasm of the dip buyers is gone and people aremoving to the sidelines for now," said Guillaume Dumans, co-headof research firm 2Bremans.

Figures showed on Monday U.S. manufacturing grew at a slowerpace in January as new order growth plunged by the most in 33years. The data pointed to some loss of steam in the world'sbiggest economy and sent U.S. benchmark stock indexes down morethan 2 percent on the day.

The sell-off spread to Asia, with Tokyo's Nikkei index plummeting 4.2 percent, its biggest one-day percentagedecline since June 2013. After a stellar performance in 2013,the Nikkei is down 14 percent so far this year.

Swiss lender UBS (Xetra: UB0BL6 - news) bucked the trend on Tuesday,rising 3.1 percent after posting a larger-than-expectedfourth-quarter profit.

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