European shares skid on inflation angst as oil jumps

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Oct 6 (Reuters) – European shares tumbled greater than 1% on Wednesday as a surge in oil costs intensified issues over larger inflation, whereas buyers moved out of high-growth tech shares into banking shares.

After a late-session rally on Tuesday, the pan-European STOXX 600 index (.STOXX) fell 1.2%, with the tech sector (.SX8P) down greater than 2%.

Banks (.SX7P) slipped 0.1%, however have been the smallest decliners on prospects of upper rates of interest, as bond yields climbed and oil costs hit multi-year highs.

UK’s HSBC (HSBA.L) and Germany’s Commerzbank (CBKG.DE) have been up greater than 1% every.

Deutsche Telekom (DTEGn.DE) fell 4.1% after Goldman Sachs (GS.N) bought shares price 1.58 billion euros ($1.83 billion) in a SoftBank (9434.T) structured finance deal.

Bayer AG (BAYGn.DE) rose 0.7% after the German agricultural and prescription drugs agency received its first trial over claims its Roundup weedkiller causes most cancers. learn extra

Tesco (TSCO.L) jumped 4.5% as Britain’s largest retailer raised its full-year outlook and launched a 500-million-pound share buyback programme. learn extra

Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, September 29, 2021. REUTERS/Staff