By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets moved broadly
lower on Thursday, after the U.S. and the European Union each
announced a new round of sanctions on Russia, bringing Ukraine
tensions back in focus.
The Stoxx Europe 600 index slid 0.5% to 341.43, after posting
the biggest one-day percentage gain since April on Wednesday.
Among notable movers in the pan-European index, shares of Banco
Espírito Santo SA slumped 7.5% after Standard & Poor's Ratings
Services late Wednesday lowered the lender's rating to B- from B+
and said it kept the long-term rating on negative watch. BES shares
soared 20% on Wednesday after comments that shareholders stand
ready to participate in a capital increase amid financial troubles
at parent company Espirito Santo International.
Shares of Sandvik AB gave up 3.4% after the Swedish engineering
group reported a drop in second-quarter profit.
Bucking the negative trend, shares of ITV PLC rallied 7.9% after
news that Liberty Global PLC (LBTYA) is buying a 6.4% stake in the
U.K. broadcaster for 481 million pounds ($824.18 million).
Russia sanctions
On a country level, Russia's MICEX index slumped 2.7% to
1,435.36 after the White House widened sanctions against Russia.
The U.S. is restricting access to the American debt market for some
Russian banks, energy companies and defense firms. Meanwhile, the
EU said it would announce detailed sanctions by the end of
July.
State oil producer Rosneft was among sanctioned firms, sending
the shares down 4.6% in Thursday's trade.
Jim O'Neill, economist who coined the BRIC term and former
Goldman Sachs Asset Management chairman, told CNBC on Thursday that
"it's easy for the U.S. to make a noise with sanctions, as there's
not as much on the line as for Europe."
"For some parts of Europe, Germany and Italy in particular, it's
a big deal," he said.
Germany's DAX 30 index fell 0.3% to 9,830.25, while France's CAC
40 index lost 0.5% to 4,349.45. The U.K.'s FTSE 100 index dropped
0.4% to 6,758.00.
In data news, the final reading on euro-zone inflation for June
confirmed that consumer prices rose a meager 0.5% last month.
Among movers in Europe, shares of SAP SE (SAP) climbed 4.1%
after the German software company raised its full-year revenue
outlook for cloud applications.
Carrefour SA added 1% after the French supermarkets company said
sales rose in the second quarter.
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