European shares steady as Banco Popular cash call hits banks

jueves 26 de mayo de 2016 10:51 GYT

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* STOXX 600 flat after touching 4-week high in previous session

* Bank sector weighed down by Banco Popular rights issue

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By Danilo Masoni and Alistair Smout

MILAN/LONDON, May 26 (Reuters) - European shares steadied on Thursday, with banks coming under pressure after a surprise rights issue by Spain's Banco Popular fuelled fears others in the region may follow to strengthen their balance sheets.

The pan-European STOXX Europe 600 was little changed by 1433 GMT, while the FTSEurofirst 300 added 0.1 percent. Both hit a four-week high in the previous session, helped by a two-day rally in banking stocks.

Europe's banking sector index gave up part of those gains, falling 0.7 percent after Banco Popular announced a 2.5 billion euro cash call, which caught some investors by surprise. Its shares fell 25 percent.   Continuación...