European stocks extend losses on US inflation
LONDON, Aug 19 (Reuters) - European shares extended losses to hit their day's lows in afternoon trade on Tuesday after a U.S. government report showed that U.S. wholesale prices shot up in July at the fastest year-on-year rate in 27 years.
Core producer prices, which exclude food and energy, jumped 0.7 percent in July after a 0.2 percent increase in June.
At 1236 GMT, the pan-European FTSEurofirst 300 .FTEU3 index was down 1.95 percent at 1,166.01 points, having hit a low of 1,164.59 after the data.
Banks were the top losers, with HSBC (HSBA.L: Quote, Profile, Research, Stock Buzz), RBS (RBS.L: Quote, Profile, Research, Stock Buzz) and ING (ING.AS: Quote, Profile, Research, Stock Buzz) off 3.6-4.7 percent.
(Reporting by Sitaraman Shankar)
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