Reply #41: Weaker banks push European shares to 2-week lows [View All]

http://www.reuters.com/article/2011/05/05/us-markets-europe-stocks-idUSTRE74321B20110505

(Reuters) - European shares hit a two-week low on Thursday as banks fell following disappointing earnings news, with Lloyds (LLOY.L) slipping on a surprise $5.3 billion provision and Societe Generale (SOGN.PA) missing profit forecasts.

A 6.6 percent rise in the Euro STOXX 50 volatility index .V2TX, one of Europe's main barometers of anxiety, suggested a decline in investors' appetite for riskier assets, while charts signaled further declines in the near-term, though analysts remained positive on the stock market's longer-term outlook.

At 1108 GMT the FTSEurofirst 300 .FTEU3 index of top European shares was down 0.9 percent at 1,124.47 points after touching 1,122.31 -- the lowest since April 20. It hovered below its 50-day moving average -- a near-term bearish signal.

Banks featured among the top losers, with the sector index .SX7P down 1.5 percent. Lloyds fell 8.7 percent after taking a huge charge to compensate consumers for mis-selling debt repayment insurance policies, while Societe Generale fell 4.8 percent after posting lower than expected first-quarter results.