European shares slip on debt crisis, regulation

LONDON, May 21 (BestGrowthStock) – European shares extended losses
on Friday after sharply falling in the previous two sessions,
with heightened concerns about the euro zone sovereign debt
situation and tougher financial regulation hurting sentiment.

At 0707 GMT, the FTSEurofirst 300 (.FTEU3: ) index of top
European shares was down 0.5 percent at 970.38 points after
falling about 5 percent in the previous two sessions.

Energy shares were among the top losers, with BP (BP.L: ),
Royal Dutch Shell (RDSa.L: ), BG Group (BG.L: ), Tullow Oil (TLW.L: ),
Repsol (REP.MC: ) and Total (TOTF.PA: ) shedding 0.2 to 3 percent.

“Europe has certainly not been talking with a unified voice,
which casts some doubt about the way this sovereign crisis will
be handled. If you put on top of that a bit of less enthusiastic
support for growth scenario, you get a correction,” said Luc Van
Hecka, chief economist at KBC Securities.

“Everybody is very well aware that if there is one calamity
that we should avoid at all cost is the second round in asset
deflation.”

Further weighing on sentiment, the U.S. Senate on Thursday
approved a sweeping Wall Street reform bill, which threatens to
constrain the banking industry (Read more about the banking industry recovery.) and reduce its profits for years
to come. [ID:nN20244272]

British Airways (BAY.L: ) rose 1.4 percent. It posted a record
531 million pounds ($762 million) full-year loss, hit by strikes
and winter snow, though said it had managed to cut costs by
around 1 billion pounds due to restructuring efforts.

Stock Investing

(Reporting by Atul Prakash)

European shares slip on debt crisis, regulation