European stock rally stalls; Portuguese banks sag

miércoles 14 de mayo de 2014 07:11 GYT

* FTSEurofirst 300 down 0.3 pct, retreats from 6-year high

* Germany's DAX hovers just below record high

* Portugal stocks sag; talk of capital hike hitting banks

By Blaise Robinson

PARIS, May 14 (Reuters) - European shares paused on Wednesday after a two-month rally that propelled a number of indexes to multi-year peaks, as investors awaited confirmation of more stimulus from the ECB before they chased the market higher.

Portuguese stocks sank, with Lisbon's PSI 20 falling 1.8 percent. They were led lower by banking stocks after a report said Millennium bcp was considering a capital increase to speed up repayment to the state of its contingent convertible bonds, or CoCos.

A spokesman for the bank, Portugal's largest private lender, said on Wednesday it has made no decision about a possible capital increase.

Shares in Millennium were down 4.8 percent. Banco Espirito Santo lost 3.4 percent.

The PSI 20 had outperformed broad European indexes in the first four months of the year, rising as much as 19 percent as the Portuguese bond yields dropped and investor confidence in the country improved.   Continuación...