European shares hit 2-week low, Adidas slumps

jueves 31 de julio de 2014 07:39 GYT

* FTSEurofirst 300 index falls 0.7 pct

* Adidas, Banco Espirito Santo shares slump

* Worries about U.S. monetary policy hit sentiment

By Atul Prakash and Blaise Robinson

LONDON/PARIS, July 31 (Reuters) - Europe's FTSEurofirst 300 index of top shares slipped to a two-week low on Thursday, led lower by Adidas after the group warned about business in Russia, while Argentina's default also rattled investors.

The broader market was dragged down by sharp declines in some individual stocks, with German sportswear company Adidas falling 13 percent and Portugal's Banco Espirito Santo sinking nearly 50 percent at one point to a record low after booking a 3.6 billion euro first-half loss.

BES, down 27 percent, pushed Portugal's benchmark PSI 20 index 2.4 percent lower to underperform the wider market, while Adidas dragged Germany's DAX 0.9 percent down after saying it will scale back plans to expand in Russia and overhaul its golf business.

Spanish stocks also came under pressure, with Madrid's IBEX dropping 1.7 percent, as traders cited worries over Spanish companies' exposure to Latin America after Argentina defaulted on its debt on Thursday.

At 1114 GMT, the FTSEurofirst 300 was down 0.7 percent at 1,356.82 points after falling up to 1,353.67, the lowest since mid-July, with analysts saying the sell-off might continue on worries about further monetary tightening in the United States.   Continuación...