Eurostocks end down

European stock exchanges closed lower yesterday, in subdued trade as Wall Street remained shut for the US Independence Day, with Dutch retailer Vendex leading declining issues after an earnings warning.

But strong gains from forestry and paper-related stocks helped cap losses as telecoms, utilities and financial shares led the sectoral losers.

By 1545 GMT, with only Frankfurt still officially trading, the FTSE Eurotop 300 index was down 0.32 per cent at 851 points, while the DJ Euro Stoxx 50 index eased 0.65 per cent to 2,406 points.

The benchmark Eurotop ended the week one per cent lower than it started it as fears that looming second quarter earnings will not justify the leap of faith made by prices during the past quarter gripped equity markets.

"Markets are still torn between different factors," said CIC chief economist Valerie Plagnol citing upcoming earnings, expectations of anemic economic recovery, a feeling that the US Federal Reserve will not cut interest rates further and doubts over whether the European Central Bank will agree to further monetary easing.