Markets

European shares fall on lack of Fed stimulus

Published Updated

At 0805 GMT, the FTSEurofirst 300 index of top European shares was down 0.7 percent at 965.66 points.

The heavyweight banking sector, strongly exposed to the euro zone crisis, was among the fallers. The STOXX Europe 600 Banking Index fell 0.9 percent.

"There was a bit of expectation in the market yesterday about the Fed (announcing stimulus)," said Jeremy Batstone-Carr, strategist at Charles Stanley.

He added that the economic uncertainty means "it remains incumbent on investors to have a portfolio of high quality stocks - concentrate on dividend yields and ability to generate cash".

Copyright Reuters, 2011