(ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets for site in development. See the bottom of the report for more details)
* FTSEurofirst 300 down 1.1 percent
* BBVA, Airbus lower after disappointing results
* But Deutsche Bank rises on surprise profit
By Danilo Masoni
MILAN, April 28 (Reuters) - European shares fell on Thursday after the Bank of Japan unexpectedly held off from expanding monetary stimulus, while Spanish bank BBVA and Airbus fell on disappointing earnings updates.
BBVA was the worst-performing stock in Europe, dropping 7.6 percent after Spain’s second-biggest lender missed estimates with a 54-percent fall in first quarter net profit.
“European markets are lower today first of all (because) there are probably more earnings disappointments than beats and beats are based on dramatically lowered expectations,” Will Hamlyn, investment analyst at Manulife Asset Management, said.
Hamlyn also said the sharp fall in the Nikkei that followed the BOJ decision was weighing on sentiment, and that there was some profit taking as markets traded well above February lows.
The pan-European FTSEurofirst 300 index, which hit a three-month high last week, was down 1.1 percent by 0817 GMT, while the euro zone’s blue-chip Euro STOXX 50 index dropped 1.4 percent.
European stocks tracked a pullback on the Nikkei and other major stock markets after the BOJ’s move offset earlier momentum triggered by the U.S. Federal Reserve staying tight-lipped on whether it would raise interest rates in June.
Airbus also fell 5.8 percent after it reported a heavier-than-expected seasonal outflow of cash and warned of serious challenges for its A400M military plane.
Lloyds fell 4.2 percent after it reported underlying profits in line with expectations, keeping first quarter revenues steady and cutting bad debts despite the challenging economic environment.
Among the top performers, Deutsche Bank rose 3 percent after it posted a surprise net profit in the first quarter, helped by lower litigation costs.
ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon (see cpurl://apps.cp./cms/?pageId=livemarkets for site in development). In a real-time, multimedia format from 0600 London time through the 1630 closing bell, it will include the best of our market reporting, Stocks Buzz service, Eikon graphics, Reuters pictures, eye-catching research and market zeitgeist. Breaking news and dramatic market moves will continue to be alerted to all clients and we will continue to provide a short opening story and comprehensive closing reports.
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Mike Dolan, Markets Editor EMEA.
Reporting by Danilo Masoni; Editing by Sudip Kar-Gupta and Raissa Kasolowsky