European shares retreat as easyJet dives; banks outperform

jueves 6 de octubre de 2016 04:42 GYT

* STOXX 600 down 0.1 pct

* easyJet slumps after guidance

* European banks recover (Adds detail, quote and updates prices)

By Kit Rees

LONDON, Oct 6 (Reuters) - European shares retreated on Thursday after easyJet dropped to its lowest in more than three years, although the beaten-down banking sector rose for the third straight session.

The STOXX 600 index fell 0.1 percent after opening in positive territory, extending the previous session's losses, when both shares and bonds were hit by worries that the European Central Bank might wind down the pace of bond-buying before the end of its asset-purchase programme.

Budget airline easyJet was the biggest laggard, down over 6 percent after saying that its annual profit would fall by more than 25 percent this year, its first drop since 2009. It cited disruptions, security concerns and an adverse exchange rate .

Shares in rivals IAG and Ryanair both fell more than 2 percent.

"Despite easyJet's strong margins ... and attractive strategic positioning, we see negative EPS momentum as the dominant driver for the shares in the short term," analysts at Liberum, who have a "sell" recommendation on the stock, said in a note.   Continuación...