European Equities Start Lower

European shares were lower in morning trade on Monday, tracking their Asian counterparts lower, as sentiment was curbed by lower commodity prices and fears of deflation in the euro zone region.

The pan-European Euro Stoxx 600 was lower with U.K. supermarket Tesco the major laggard. Shares of the company slipped around 10 percent at the open as it announced it had overstated its half-year profits by £250 million ($409 million).

Other U.K. grocers like WM Morrisson and Sainsbury also tipped lower on the news but weakness in the basic resources also heavily weighed on bourses. The sector lost around 2.5 percent in early deals with lower commodity prices meaning potential revenue losses for big mining firms. Anglo American lost 3.2 percent and Rio Tinto fell 3.1 percent. Glencore was the biggest faller, sliding 3.3 percent, but an announcement Monday said that it was in a contract dispute with London Mining PLC.


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