No Fed boost for European stocks as banks fall; chipmakers shine

© Reuters. The German share price index DAX graph at the stock exchange in Frankfurt© Reuters. The German share price index graph at the stock exchange in Frankfurt

(Reuters) – European stock markets opened lower on Thursday, as the impact on banks of an accommodative policy message from the U.S. outweighed any broader lift to sentiment from its abandoning of further interest rate hikes this year.

The pan-European index dipped 0.3 percent, driven by falls in Paris, Madrid and Frankfurt that contrasted with a strong reaction on Asian markets to the Fed’s statement and news conference.

’s led with a 0.5 percent fall, weakened by a 1 percent loss for bank stocks, which tend to suffer when expectations for future interest rates fall.

Banking shares across had also risen earlier this week on signs of a merger between Deutsche Bank (DE:) and Commerzbank (DE:).

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A bright spot were semiconductor makers, boosted by Micron (NASDAQ:) Technology’s upbeat outlook for the sector, which soothed worries about falling demand for smartphones. Infineon and STMicro were both up 2 percent.

EssilorLuxottica’s shares slumped to the bottom of the and the STOXX 600 on new tensions in its boardroom as the top shareholder and executive chairman accused the Franco-Italian group’s executive vice chairman of a power grab.

punished HeidelbergCement (DE:), the world’s second-largest cement maker, after its results and Swedish construction group Skanska fell 3.2 percent after it said it would not reach a target for operating margins.

’s was the only index to buck the trend, gaining 0.3 percent as miners benefited from higher prices on the back of a weaker dollar.

The market’s internationally-focussed blue chip stocks also tend to gain on falls for sterling, which was suffering again from Britain’s failure to find a clear route out of the before a March 29 deadline.

Among its midcaps, a profit warning from British precision engineering group Renishaw Plc due to a slowdown in drove its shares 14 percent lower.

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