European shares steady as Portuguese rout pauses

viernes 11 de julio de 2014 12:55 GYT

* Portuguese index up 0.6 pct; weekly loss worst since 2010

* FTSEurofirst 300 up 0.2 pct, worst weekly drop since April

* BES down 5.5 pct after update but others seen unaffected

By Francesco Canepa

LONDON, July 11 (Reuters) - European markets steadied and shares in Lisbon staged a small bounce on Friday as concerns eased about the health of Portugal's largest bank and its impact on the euro zone financial system.

Banco Espirito Santo said late on Thursday that losses associated with the founding family and its holding company would not affect the bank. That calmed investor worries about a chain reaction hitting other banks, especially in the euro zone's periphery.

Lisbon's PSI 20 index rose 0.6 percent on Friday but was still down 10 percent on the week, its biggest drop since 2010, when the country's sovereign debt crisis started.

The pan-European FTSEurofirst 300 index edged up 0.2 percent to 1,352.11 points but closed the week 3.5 percent lower, its steepest loss since April.

Doubts about the financial health of the family that controls BES had pulled the PSI 20 to a nine-month low on Thursday and rocked bourses across Europe.   Continuación...