European shares fall amid disappointing bank earnings

  • Reuters
  • Stock Market News
European shares fall amid disappointing bank earnings
Credit: © Reuters.

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May 15 (Reuters) - European shares fell on Wednesday after a rebound the day before as a softer tone from U.S. President Donald Trump calmed investor worries over worsening trade relations between China and the United States.

The pan-European STOXX 600 index .STOXX fell 0.4% by 0743 GMT. Bank-heavy Italian .FTMIB and Spanish .IBEX indices led the losses after some dour results from their lenders.

On Tuesday, Trump called the trade dispute with China "a little squabble" and expressed optimism about reaching a deal. His comments helped markets recover from two-months lows after both side imposed duties on each other's imports. shares also found support as weak retail sales and industrial output data from China raised hopes for more stimulus from Beijing DAX .GDAXI – the most sensitive European market to trade-war fears - dropped 0.4%, even though the latest data showed Europe's biggest economy returning to growth in the first quarter of 2019 .SXAP , which were among the leading gainers on Tuesday, dropped 1.3%.

Renault's RENA.PA shares fell about 3% after its Japanese partner, Nissan 7201.T , issued a bleak earnings outlook. Volkswagen VOWG_p.DE also fell about 3% fell 0.9%, weighed down by disappointing results. Raiffeisen Bank International (RBI) RBIV.VI and Dutch bank ABN Amro ABNd.AS both missed profit expectations. French bank Credit Agricole's CAGR.PA first-quarter net profits dropped after two one-off events offset gains in profitability at some of its businesses the trend was British bank CYBG Plc CYBGC.L , which jumped 6% to the top of STOXX 600 after posting a first-half profit LHN.S rose 1.3% as the world's largest cement maker posted a rise in operating profit. The IT services provider Cancom SE COKG.DE gained after confirming its full- year outlook. STM.BN rose after Kepler Cheuvreux raised its price target. German publisher Axel Springer SPRGn.DE gained after JP Morgan upgraded its shares to "overweight" from "neutral".

A more than 5% drop in E.ON EONGn.DE weighed on the energy company's shares and the utilities sector as Goldman Sachs (NYSE: GS ) downgraded its shares. Its shares also traded ex-divided.

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