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European shares slip as Dialog dives while Shell slides

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[LONDON] European shares retreated on Thursday, weighed down by some weak corporate updates out from the likes of Dialog Semiconductor and oil major Royal Dutch Shell.

The pan-European STOXX 600 index and the similar FTSEurofirst 300 were both down by 0.3 per cent in early session trading.

Dialog dropped by 10 per cent, the worst-performing stock on the STOXX 600 index, after the German company cut its 2016 sales outlook, while Shell fell by 4 per cent after it reported a slump in profits.

Shares in British bank Lloyds also fell 3.4 per cent after Lloyds warned of a likely drop in demand caused by Britain's vote to quit the European Union and added it would accelerate its cost-cutting plan to offset the more testing economic environment.

The STOXX 600 has rebounded by around 10 per cent from a low point reached on June 27 after last month's shock Brexit vote, but it remains down by around 7 per cent so far in 2016.

REUTERS