June 15, 2017 / 7:47 AM / a month ago

Basic resources, retailers send European shares near 2-month low

2 Min Read

LONDON, June 15 (Reuters) - Weak basic resources stocks amid depressed crude prices sent European shares sliding for the second straight session on Thursday.

Investors awaited interest rate decisions from the Bank of England and Swiss National Bank due later in the day, though market expectations are for both to keep rates on hold.

Crude prices wallowed near a seven-month low as doubts grew over OPEC's ability to cut oil supplies, weighing on stocks worldwide.

The pan-European STOXX 600 benchmark fell 0.5 percent to its lowest since April 24, while Euro zone stocks and blue-chips fell 0.8 percent.

Germany's DAX fell 0.3 percent, just off its new record high touched on Wednesday.

Britain's FTSE was down 0.6 percent while mid-caps fell 1.1 percent.

Basic resource stocks Anglo American, Randgold Resources and Polymetal were among the worst fallers.

Retailers were also weak, as lukewarm results and downbeat company updates sent the pan-European index to a two-month low.

H&M shares fell 2.7 percent after its May sales missed forecasts, adding to a string of softer figures from the fashion retailer which blamed tough trading conditions.

DFS Furniture plummeted 21 percent on Britain's small-cap index after a profit warning which it blamed on a dip in demand, with significant declines in store footfall amid a weaker trading environment it said was market-wide.

Among notable broker activity, Petrofac shares rose to the top of the European index after a Jefferies upgrade, while telecoms firm Proximus fell 3.3 percent after suffering a cut to 'sell' from Citi.

Stocks in Athens were down 0.2 percent ahead of a Eurogroup meeting which could yield a short-term debt agreement. (Reporting by Helen Reid, Editing by Vikram Subhedar)

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