* STOXX 600 down 0.8 pct
* VSTOXX hits highest since Dec 2016
* Miners, oil stocks biggest fallers
(Recasts, adds quotes and detail, updates prices)
By Kit Rees
LONDON, April 18 Commodity-linked stocks sent
European shares to two-week lows on Tuesday in a choppy start to
the session, as uncertainty hung over the looming first round of
France's presidential election.
The pan-European STOXX 600 index was down 0.8
percent, while Britain's FTSE 100 fell 1 percent.
France's CAC dropped 1 percent.
The basic resources sector was the biggest sectoral
faller, down 2.4 percent, with analysts saying a slump in iron
ore prices was weighing on miners.
Shares in steel miner ArcelorMittal, Anglo
American and BHP Billiton fell 3.2 to 5.6
Oil & gas shares also fell 1.5 percent as the price
of oil edged down following an expected climb in U.S. output.
Oil firms Statoil and BP both declined more
than 2.7 percent.
Europe's VSTOXX volatility index hit its highest
level since December 2016 ahead of the first round of the French
presidential elections, and amid rising geopolitical tensions
after North Korea's failed missile test over the weekend.
"It's not a coincidence that the French CAC index was one of
the biggest fallers today, because ... French election risk is
coming to the fore," Jasper Lawler, senior market analyst at
London Capital Group, said.
"The polls are neck-and-neck at the moment, so it seems a
good chance that a political outsider is going to win."
A poll released by Ifop-Fiducial saw centrist Emmanuel
Macron leading the first round of the French election with 23
percent, followed closely by far-right Marine Le Pen with 22
percent and far-left Jean-Luc Melenchon with 19.5 percent.
Jeweler Pandora was the worst performing stock
on the STOXX 600, down over 8 percent at its lowest level since
August 2015 after Nordic broker Carnegie downgraded the stock to
"hold" from "buy".
DONG Energy was also on the backfoot after
Citigroup cut its rating to "neutral", sending it 3.6 percent
"Following +11% share price performance over the past 9m,
disappointing and potentially value destructive German offshore
wind auction price, as well as the widely expected possible
further placing of 7% of DONG Energy share in May by New Energy,
we downgrade DONG Energy to Neutral," Jenny Ping, analyst at
Citigroup, said in a note.
Among risers, biotech firm Galapagos jumped 3.3
percent after raising $338 million gross proceeds in a U.S.
public offering, while Germany's Uniper gained 2.3
percent after SocGen raised its rating on the stock to "buy"
(Reporting by Kit Rees; Editing by Vikram Subhedar and Andrew