Europe: Shares resume slide as earnings disappoint, Italian banks drop

[MILAN] European shares resumed their downwards trend on Thursday, hit by some disappointing earning updates including from UK utility Centrica and a fall in Italian banks on continued uncertainty over the outlook for the country's finances.

At 0818 GMT, STOXX 600 fell 0.5 per cent, with most sectors trading in the red following broad-based gains in the previous session that helped the pan-European index bounce from near two-year lows.

Uncertainty over Italian politics, Brexit and worries over slowing economic and earnings growth have discouraged investors from taking risks as central banks take steps to end years of easy monetary policy.

On Thursday, Centrica fell 8.7 per cent to lead losers on the STOXX 600 after its trading update. Analysts at Jefferies said even though the company affirmed some its debt and dividend targets for the year, its earnings per share guidance was 10 percent below consensus.

REUTERS