Europe shares dip; banks see profit-taking after ECB tests

lunes 27 de octubre de 2014 07:56 GYT
 

* FTSEurofirst 300 down 0.2 pct, trims last week's gains

* Investors book profits on banking shares after ECB tests

* Air France-KLM drops; Morgan Stanley trims profit forecast

By Blaise Robinson and Sudip Kar-Gupta

PARIS/LONDON, Oct 27 (Reuters) - European stocks dipped on Monday as investors seeing a key index of German business sentiment hit its lowest level in almost two years decided to book some of last week's sharp gains.

Following an early rally, most euro zone banking stocks turned negative in late morning as traders took profits off the table after the sector's 14 percent surge since mid-October in the run-up to the results of the European Central Bank sector review.

"I think it's a case of 'buy the rumour and sell the fact'," said Terry Torrison, managing director at Monaco-based McLaren Securities.

"We had a decent run-up ahead of the stress test results, but everyone was jumping on the bandwagon and ramping things up this morning without any clear reason, given that the results of the stress test were in line with market expectations."

Among the top gainers, shares in Germany's Commerzbank gained 1.3 percent while Austria's Erste Group Bank added 4.9 percent. Both lenders passed the tests.   Continuación...