European shares fell on Thursday after data showed sluggish growth in the US economy in the first quarter and on doubts as to whether the International Monetary Fund would release its next tranche of aid to Greece. However, analysts said there was still much uncertainty over the euro zone debt crisis and the global economy and the market was likely to remain range-bound over the summer in the absence of substantive news.
The FTSEurofirst 300 index of top European shares ended 0.1 percent lower at 1,126.28 points after a choppy session, rising as high as 1,130.40 and falling up to 1,123.03 points during the day. Germany's DAX lost 0.8 percent, while Italy's FTSE MIB dropped 0.7 percent. Automakers featured among the top losers, with the sector index down 0.8 percent on worries about global demand for vehicles following the disappointing US economic numbers.
Figures showed the number of Americans claiming unemployment benefits rose last week, while the US economy expanded at an unrevised 1.8 percent annual rate in the first quarter, against a rate of 3.1 percent in the fourth quarter. Jean-Claude Juncker, head of euro zone finance ministers, said the International Monetary Fund might withhold the next slice of aid to Greece due next month, spooking markets with the prospect of default.
Banks were also down, with relatively very high trading volumes. The STOXX Europe 600 banking index fell 0.3 percent, while Alpha Bank, Bank of Ireland and Unicredit dropped 2.9 to 4.6 percent. Among individual movers, TNT Express jumped 9.7 percent on emerging market growth and take-over hopes, while struggling mail unit PostNL fell 7.4 percent after the units of Dutch mail group TNT listed as separate units on the Amsterdam exchange.