STOXX 600 drops 1.4
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AXA up on deal talks with BNP Paribas
Engie gains after lifting profit guidance
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Aug 2 Reuters European shares fell more than 1 on Friday, tracking a global riskoff sentiment following disappointing U.S. growth data and overshadowing a handful of positive corporate updates.

The panEuropean STOXX 600 index fell 1.4 after touching a threemonth low earlier in the session. It is also set to log a 1.5 decline this week.

Most European subindexes were in the red, with the technology sector falling 3.6 to a sixmonth low. The financial sector lost 3.2. Lower rates could weigh on interest margins, a key source of income for lenders.

A handful of defensive stocks, such as heavyweights Unilever and AstraZeneca, gained on the day, keeping losses in check.

Market moves can get exacerbated during summer weeks when you get thinner liquidity and trading, especially in August and that can add to the magnitude of moves, Karim Chedid, Blackrock39;s chief investment strategist for iShares EMEA, said.

A global wave of risk aversion that began overnight in the U.S. swept across Asia and seeped into Europe, sending the STOXX 600 to its worst day in over three months.

The selloff was ignited by a dismal reading in U.S. manufacturing activity on Thursday, which plunged to an eightmonth low in July, dampening hopes of a soft landing for the economy.

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