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* Spain’s Banco de Sabadell slumps after profit warning
* But Vodafone rises after Q1 revenue figures
* STOXX up off post-Brexit lows, but still down 7 pct in 2016
By Kit Rees and Sudip Kar-Gupta
LONDON, July 22 (Reuters) - European stock markets slipped on Friday, weighed down by falls at Spain’s Banco de Sabadell , though Vodafone gained after its update.
The pan-European STOXX 600 was down by 0.1 percent while the similar FTSEurofirst 300 was flat at the close.
Banca de Sabadell slumped 7.5 percent after the Spanish bank warned on its year-end profit.
Shares in British mobile operator Vodafone climbed 4.6 percent after reporting better-than-expected business figures, while Finland’s Metso Oyj, an industrial machinery company, rallied 3.7 percent on the back of several broker upgrades.
The STOXX 600 index is up by around 10.5 percent from a low point reached in June in the immediate aftermath of Britain’s shock vote to quit the European Union, but the index remains down by around 7 percent since the start of 2016.
Hantec Markets’ analyst Richard Perry said European stocks were starting to stall after that rebound from the June low, due to uncertainty over ‘Brexit’ and the timing of any new central bank measures that may be taken to spur the economy.
The European Central Bank (ECB) kept interest rates unchanged at record lows on Thursday but left the door open to more policy stimulus, highlighting risks to the economic outlook.
“There’s been some renewed selling pressure on equities given this state of uncertainty, and the ECB has not dispelled that with its ‘wait-and-see’ policy,” Perry said.
“Equities should rally further down the road when more monetary easing kicks in, but they are unlikely to make much progress in August,” he added.
Rupert Baker, a European equity sales executive at Mirabaud Securities, said there were some concerns over the extent to which equities had been held up solely on expectations of more help from central banks, rather than any underlying improvement in corporate earnings or the economy.
“People are a bit worried that we’re only being held up by the happy gas of negative interest rates,” he said. (Editing by Andrew Heavens)