European shares hit by Lisbon losses and Russia tensions

jueves 7 de agosto de 2014 12:38 GYT

* Concerns over Portuguese banks hits Lisbon market

* ECB keeps rates at record lows

* Ukraine/Russia sanctions keep stock markets on back foot

* FTSEurofirst 300 falls 0.7 pct to 1,314.27 points

By Sudip Kar-Gupta

LONDON, Aug 7 (Reuters) - Concerns about Portugal's banking system and tensions between Western powers and Russia pulled down European stock markets on Thursday.

The European Central Bank kept its main interest rate at a record low 0.15 percent, but the decision had been widely expected by investors and did not move equity markets.

Lisbon's benchmark PSI-20 index closed down 2.3 percent, underperforming a 0.7 percent decline on the pan-European FTSEurofirst 300 index and a 1.2 percent fall on the euro zone's blue-chip Euro STOXX 50 index .

Traders said the Lisbon market had been hurt by fears over the state rescue of the Portuguese bank Banco Espirito Santo (BES), which has been hit by financial problems associated with its Espirito Santo founding family.   Continuación...