European shares slip on US stimulus review
EUROPEAN shares fell on Thursday, taking their cue from Wall Street and Asia which saw poor overnight showings after the minutes to the U.S. Federal Reserve's June meeting dampened hopes for fresh risk-asset-boosting stimulus in the near term.
The FTSEurofirst 300 weakened 0.8 percent to 1,031.11 by 0703 GMT, having closed flat on Wednesday.
The Fed minutes showed the world's biggest economy would have to worsen further before the central bank eased monetary policy further. A few officials thought more stimulus was justified, but the majority were unconvinced.
"It doesn't change my overall view that QE3 is going to happen later this year or the beginning of next year. But in the short term this was a disappointment," Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets, said.
"There is not much to expect from economic data, there is not much to expect from earnings, so the only thing markets hope for is more quantitative easing, more stimulus from Europe - more stimulus from everywhere."
In a broad-based fall, basic resources were the worst hit sector, down nearly 2 percent.