European shares hit 5-week low on Greece debt woes

LONDON, April 28 (BestGrowthStock) – European shares hit a five-week
low early on Wednesday, after recording their biggest one-day
fall in five months a day earlier, as downgrades of Greek and
Portuguese debt sent shock waves in the market.

At 0707 GMT, the FTSEurofirst 300 (.FTEU3: ) index of top
European shares was down 0.5 percent at 1,064.03 points after
touching 1,063.02, the lowest since late March. It tumbled 3.1
percent on Tuesday, but is still up 64 percent since hitting a
record low in March last year.

Banks were among the top losers, with STOXX Europe 600
banking index (.SX7P: ) falling 1.2 percent. Barclays (BARC.L: ),
Lloyds (LLOY.L: ), Royal Bank of Scotland (RBS.L: ), BNP Paribas
(BNPP.PA: ), Societe Generale (SOGN.PA: ) and Credit Agricole
(CAGR.PA: ) fell 1 to 3.7 percent.

“Investors are starting to react emotionally. In the current
environment, it’s very difficult to impress with
better-than-expected earnings,” said Koen De Leus, economist at
KBC Securities.

“The chances of a default by the Greek government are
increasing not by the day but by the hour. If the IMF and
European governments don’t come up with something quickly, then
I see the market going down further quite rapidly.”

Royal Dutch Shell (RDSa.L: ) rose 1.1 percent after reporting
a 49 percent rise in first quarter net profit, thanks to higher
oil prices and an unexpected return to production growth which
helped the oil major beat all analysts’ forecasts.

Investment Analysis

(Reporting by Atul Prakash)

European shares hit 5-week low on Greece debt woes