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* STOXX 600 falls for third straight week
* UK mulls easing travel restrictions
* Miners shed nearly 8% for the week
* Travel & leisure leads weekly sectoral gains
(Adds comments, updates prices throughout)
By Shreyashi Sanyal
Sept 17 (Reuters) - European stocks fell on Friday, capping
their third straight week in the red as the basic resources
sector was hit by declines in Anglo American, but news that
Britain was mulling easing travel restrictions boosted airlines
and hotel groups.
Anglo American tumbled 8.1% after Morgan Stanley and
UBS downgraded the stock. The European mining index was
also hit by worries about slowing growth in China, falling
nearly 8% for the week.
The pan-European STOXX 600 index fell 0.9% on the
day.
London's miner-heavy FTSE 100 index shed 0.9%, while
German stocks fell 1.0%.
Most regional indexes were pressured this week on worries
about slowing global growth and tighter regulation of Chinese
firms.
"Although still fairly measured at present, this current
selloff has the potential to be one of the most dramatic
pullbacks we have seen all year, as inflation, stagflation,
slowdown and virus risks all combine to knock back European and
U.S. markets," said Chris Beauchamp, chief market analyst at IG.
Meanwhile, after closing up 3.4% on Thursday in one of the
best single-day performances this year, the European travel and
leisure index added 1.2%. The index closed 2.7% higher
for week, leading gains across European sectors.
Wizz Air, British-Airways-owner IAG and
InterContinental Hotels rose between 2% and 5% after
Britain said it would simplify COVID-19 rules for international
travel.
While European stock markets looked set to end the week on a
steady footing, next week could be pivotal in determining
near-term market direction, with the U.S. Federal Reserve and
the Bank of England's policy meetings, as well as German
elections on deck.
"If the caution we have seen this week does carry over into
Monday and beyond, then the next Fed meeting provides another
reason to tread carefully," IG's Beauchamp said.
China-exposed luxury stocks such as LVMH, Kering
, Hermes and Richemont rebounded,
following sharp losses earlier this week on fears of fresh
coronavirus-related restrictions and regulatory moves in China.
Germany's Commerzbank climbed 1.2% after a
Handelsblatt report said U.S. investor Cerberus was considering
taking a 15.6% state in the bank after the federal election.
Spanish pharmaceuticals company Grifols rose 5.8%
after it proposed a 1.6 billion euro ($1.9 billion) takeover of
its German rival Biotest, in a move to consolidate the
plasma-based drug industry.
Data showed British retail sales unexpectedly fell again in
August in what is now a record streak of monthly declines.
(Reporting by Sruthi Shankar and Shreyashi Sanyal in Bengaluru;
Editing by Shounak Dasgupta and Andrew Heavens)
