European shares slip as China-fuelled rally loses steam

(Reuters) - European shares opened lower on Wednesday as a rally sparked by China's stimulus package lost steam, while falls in technology and oil stocks also added to the losses.

The pan-European STOXX 600 index was down 0.3% at 518.06, as of 0712 GMT, after gaining nearly 1% in the previous session.

In Asia, Chinese stocks extended their stimulus-fuelled rally to a second day, while other markets struggled for direction. [MKTS/GLOB]

SAP declined 3.5% after a report said the German software developer was under investigation in the United States for alleged price-fixing. The stock weighed the most on the benchmark and dragged the technology sub-index down by 0.8%.

The oil and gas sector led sectoral declines, losing 0.9% on worries that China's stimulus plans did not have enough to boost demand. [O/R]

France's CAC 40 ticked 0.7% lower after gaining more than 1% in the previous session. Data showed consumer confidence in the country increased in September. The country's employment data is due at 1000 GMT.



Official data showed Sweden's producer price index was up 0.6% in August from July. Its benchmark OMXS 30 was trading flat.

Among other notable stock moves, Valmet Oyj surged 9.2% after the Finnish engineering company secured an order worth more than 1 billion euros in Brazil.

Source: Investing.com