European stocks slipped in early trade today following a late sell-off in US stocks on Friday as worries over the impact of rising borrowing costs dampened investor sentiment.
Earlier this morning, the pan-European FTSEurofirst 300 index was down 0.21 per cent, at 1,601.91.
"There are still concerns about high oil prices and volatility in bond markets, and whether problems in the US housing market will be contained there or spread to the wider economy," said Henk Potts, strategist at Barclays Stockbrokers.
"In M&A, in the short term there's all to play for, with deals like Virgin Media, but eventually the effect of higher rates and credit will have to filter through, with the potential for profits getting eroded."
British cable operator Virgin Media has appointed Goldman Sachs to seek a possible buyer after it received approaches from various private equity firms, sources said.
Airline stocks across Europe were lower as authorities tightened security and British police hunted for accomplices of suspected militants who rammed a burning jeep into a Scottish airport and tried to detonate two car bombs in London.
