Danske Bank leads European shares lower on capital woes
LONDON, June 18 (Reuters) - European shares edged lower early on Tuesday, led by Denmark's Danske Bank on capital concerns while more broadly investors remained cautious ahead of a two-day meeting of the U.S. Federal Reserve.
Danske Banke fell 7.9 percent after an order by a Danish regulator for the country's biggest financial institution to set aside more capital.
By 0708 GMT, the FTSEurofirst 300 was down 5.58 points, or 0.5 percent at 1,178.78, tracking weakness overnight in Asia and an off-high finish in the United States, which traders attributed to an article in the Financial Times that fanned concerns the Fed could signal it will scale back its stimulus programme.
"There might be some volatility now ahead of the Fed decision although we expect volumes to be light and the rumour mill to be in overdrive as to what might be said," Mark Ward head of execution trading at Sanlam Securities, said.
"The most likely outcome of the FOMC meet will be Bernanke suggesting the Fed will start to taper (off) its monetary stimulus programme if the economic recovery picks up, although carefully worded so as to not wobble the markets," he said.