European shares inch up; Barclays slides on lawsuit

jueves 26 de junio de 2014 07:32 GYT

* FTSEurofirst 300 up 0.1 pct, pulls away from 1-month low

* Barclays sags on U.S. fraud lawsuit linked to stock trading

* StanChart weakens as warns on 2014 profits

* Danone rallies on mounting M&A speculation

By Tricia Wright and Blaise Robinson

LONDON/PARIS, June 26 (Reuters) - European stocks inched up on Thursday, halting the previous session's sell-off, but Barclays led falls in banking shares after the New York Attorney General filed a lawsuit against it.

Barclays shares fell 5.2 percent after the Attorney General filed a securities fraud lawsuit against the lender on charges of giving an unfair edge to its U.S. high-frequency trading clients even as it claimed to be protecting other customers from the traders.

Barclays stock's sharp decline on Thursday represented a wipe-out in market value of about 2 billion pounds ($3.3 billion). It has lost nearly 20 percent so far this year, a drop in market value of about 8.9 billion pounds.

"The judicial context is becoming a real drag for the European banking sector. There are fears among investors of a contagion effect from the U.S. investigations. After BNP, Barclays, who will be next?," said Alexandre Baradez, chief market analyst at IG France.   Continuación...