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Europe: Shares open lower, H&M drops as sales disappoint

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[MILAN] European shares were lower in early trading on Monday with Hennes & Mauritz among the main losers after disappointing sales growth figures.

By 0705 GMT, the pan-European FTSEurofirst 300 index was down 0.7 per cent. Volumes were expected to be thin with the German market closed for a public holiday.

Hennes & Mauritz fell 1.5 per cent, making it one of the top losers on the FTSEurofirst, after the Swedish budget fashion retailer reported a 5 per cent increase in April sales, below the 9 per cent expected by analysts polled by Reuters.

Prudential Plc also fell 1.6 per cent, after Morgan Stanley cut its price target on the stock, although the investment bank kept an "overweight" rating on Prudential.

Telecom Italia bucked a weak telecoms sector to rise 2.8 per cent. Italy's biggest telecoms group more nearly tripled the cost cutting target in its business plan.

REUTERS