Slump in Erste Bank halts European stocks rally

viernes 4 de julio de 2014 12:48 GYT
 

* Vienna stock market down 3 pct as Erste slumps

* Erste drags down other rival banks

* Broader European markets remain near multi-year highs

* FTSEurofirst 300 closes down 0.3 pct but near 6-1/2 year high

* U.S. market closed for public holiday

By Sudip Kar-Gupta

LONDON, July 4 (Reuters) - A slump in the shares of Austrian bank Erste hit the Vienna stock exchange on Friday and halted a rally on the broader European equity market which had reached multi-year highs this week.

Erste dropped 16.4 percent after the bank, the third-biggest in emerging Europe, warned that fresh hits from Romania and Hungary would drive it to a record 2014 loss.

Erste also dragged down the shares of rival Raiffeisen and weighed on Vienna's benchmark ATX index, which fell by 3 percent and underperformed other major European stock markets.   Continuación...