European Shares Extend Slide As Uncertainties Mount

European stocks fell for a fourth straight session on Monday amid heightened geopolitical tensions and expectations that the Federal Reserve will move ahead with further interest rate hikes.

Russian President Vladimir Putin is prepared to hold a meeting of his security council amid calls for reprisals following a massive explosion on a key strategic bridge linking Crimea and Russia.

The dollar gained ground and yields on U.S. Treasury notes rose, as a strong U.S. jobs report bolstered the case for the Fed to raise interest rates by 75 bps for a fourth consecutive meeting in November.

U.S. CPI inflation data for September due later this week is likely to show that inflation remained hot through last month.

Meanwhile, the Eurozone Sentix Investor Confidence index deteriorated to -38.3 in October from -31.8 in September, providing little reason for hope.

The pan European Stoxx 600 dropped 0.8 percent 388.45 after falling 1.2 percent on Friday.

The German DAX slipped 0.4 percent, France’s CAC 40 index fell 1.2 percent and the U.K.’s FTSE 100 was down 0.9 percent.

Chipmakers fell, with Infineon and BE Semiconductor both falling around 2 percent after the U.S. announced new export controls targeting Chinese companies.

Capgemini SE, a French IT services and consulting company, dropped about 1 percent after announcing the acquisition of UK-based Quorsus.

Solvay S.A., a Belgian-French chemical firm, added 1.8 percent. The company said that it now fully owns Solvay Special Chem Japan joint venture after acquiring 33 percent shares from Santoku Corp.

Sirius Real Estate rose 1.3 percent. The operator of branded business and industrial parks in Germany and U.K., reported that its first-half trading was in line with expectations.

British packing firm DS Smith soared 10.6 percent. In an update, the company said its trading continues to be good and consistent, and that it is looking forward to the remainder of the year with a positive note.

IQE, a semiconductor firm, gained 2.1 percent after it has inked a collaboration deal with SK siltron, to develop and commercialize compound semiconductor products with a focus on Asian markets.

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