European shares ease, Unicredit boosts Italian banks

File image

File image

Published May 11, 2017

Share

London - Italian banks shone in lacklustre

European trading on Thursday after results led by Unicredit

whose results indicated its turnaround was gathering pace.

Europe's STOXX 600 slipped 0.1 percent while both

the eurozone's broader stocks and the blue chip index

fell 0.2 percent.

Financials were a bright spot on the benchmarks for the

second day running, with Unicredit up 4.4 percent

after rising revenues and lower loan losses boosted it to better

than expected first-quarter profits.

Italy's banking index tested its highest levels

in more than a year as Mediobanca, Ubi Banca,

and Banco BPM rose 1.8 to 3.5 percent in concert.

Telecoms stocks were among the worst-performing with

BT down 1.7 percent after it announced 4,000 job cuts in

a restructuring plan to recover from a year it said was

'challenging'.

Shares in Britain's biggest telecoms company have not

recovered from a 20 percent drop after it revealed accounting

malpractices in Italy in January.

Read also:  Shares gain as Brexit tensions ease

Spain's Telefonica also fell 1.7 percent after its

results.

A setback in its generic drug Advair's approval by the US Food and Drug Administration sent Hikma shares down more

than 8 percent, the worst-performing European stock.

Broker downgrades weighed on some of the top fallers.

Centrica fell 5.8 percent after JP Morgan cut it to

'underweight' from 'overweight', while a rating cut from

Citigroup sent Hannover Re down 5 percent.

REUTERS

Related Topics: