European shares mark time, Telefonica falls after update

LONDON Fri May 9, 2014 3:08am EDT

LONDON May 9 (Reuters) - European stocks edged lower on Friday as disappointing updates from blue chips such as Spanish telecoms operator Telefonica sobered the mood after a market rally on the previous day.

At 0704 GMT, the pan-European FTSEurofirst 300 index was down 0.2 percent at 1,356.85 points, with Spain's Ibex also down 0.2 percent.

Shares in heavyweight Telefonica fell 1 percent as the company missed market expectations with a 23 percent fall in net profit.

"It looks like Telefonica came in a bit weaker and we had some people going short of the Ibex as a results," Rupert Osborne, futures dealer at IG, said.

Adding to the gloom, Nordic builder Skanska saw its operating profit for the period rise less than forecast, sending its shares down 1.7 percent. (Reporting By Francesco Canepa)