European shares slide on tighter monetary policy fears

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June 7 (Reuters) – European shares slipped on Tuesday as optimism around China’s gradual reopening faded with investors worried about the impact to global economic growth from aggressive monetary policy tightening.

Australia’s central bank raised interest rates by the most in 22 years and flagged more tightening to come as investors keep an eye out for a European Central Bank meeting this week and U.S. inflation data. nL1N2XU087 nL1N2XU081

The pan-European STOXX 600 index .STOXX fell 0.4% by 0709 GMT.

Tech stocks .SX8P led declines, down 0.7%, tracking a slide in U.S. peers overnight. French software maker Dassault Systemes DAST.PA was at the bottom of the STOXX 600 after a brokerage downgraded the company’s shares. nFWN2XT0O6

London’s FTSE 100 .FTSE was flat as the pound GBP= slid. GBP/

UK Prime Minister Boris Johnson survived a no-confidence vote on Monday and set out a raft of new policies as he seeks to shore up his position among senior ministers. nL1N2XU09W

SAS SAS.ST slumped 11.5% after the Swedish government said it will not inject new capital into the loss-making airline and does not aim to be a long-term shareholder in the company. nL1N2XU08A

(Reporting by Susan Mathew in Bengaluru; Editing by Shounak Dasgupta)

((susan.mathew@thomsonreuters.com; +91-80-6287-2704))