European shares dip in early trade; banks slip

LONDON, July 23 (BestGrowthStock) – European shares fell in early
trade on Friday, after a sharp rise in the previous two
sessions, with banks falling ahead of the results of stress
tests for the sector.
At 0707 GMT, the FTSEurofirst 300 (.FTEU3: ) index of top
European shares was down 0.3 percent at 1,036.15 points, after
rising 3.2 percent in the previous two sessions.

In an effort to calm investors’ worries over the potential
impact of the euro zone debt crisis on Europe’s banking system,
regulators are assessing how 91 banks across Europe would cope
with another economic downturn, and the results are expected to
be published on Friday.

The banking sector (.SX7P: ) fell 0.5 percent, having gained
in the past three sessions. Credit Suisse (CSGN.VX: ), HSBC
(HSBA.L: ) and Societe Generale (SOGN.PA: ) fell between 0.7 and 1
percent.
“Markets are unforgiving at the moment, and that reflects
the huge uncertainty we’re now entering,” said Howard Wheeldon,
strategist at BGC Partners, in London.

“Whatever the results of the stress tests, good, bad or
indifferent, they will not satisfy markets.”

Ericsson (ERICb.ST: ), the world’s number one mobile network
gear maker, fell 6.2 percent after posting second-quarter core
profit below expectations as operators stayed cautious about
investing and parts shortages hit sales.

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(Reporting by Brian Gorman)

European shares dip in early trade; banks slip