Sharp stock falls mar European trading as HSBC and Banco BPM disappoint

  • Reuters
  • Stock Market News
Sharp stock falls mar European trading as HSBC and Banco BPM disappoint
Credit: © Reuters.

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LONDON, Aug 6 (Reuters) - European shares floundered on Monday in cautious trading as Europe's biggest bank HSBC disappointed investors, while doubts over a planned $87 billion tie-up with Praxair (NYSE: PX ) sank shares in German industrial gases group Linde .

Falls in HSBC HSBA.L> and Banco BPM BAMI.MI after results dragged the banking sector .SX7P down, while chemicals and industrials shares also weighed on the pan-European STOXX 600 , down 0.1 percent by 0730 GMT.

HSBC shares fell 1.1 percent after it reported disappointing earnings due to rising expenses from investments in a new growth strategy and a $765 million provision against sale of U.S. mortgage securities. BPM

Linde LING.DE sank 9.6 percent to a 3 1/2 month low after it said regulators may ask it and its U.S. rival Praxair to sell more assets in order to get antitrust approval for their merger. heavyweight stock dragged Germany's DAX down to underperform peers, declining 0.2 percent. Linde also pulled the chemicals sector index down 0.9 percent.

British serviced offices group IWG IWG.L also suffered from M&A pain, sinking 20.8 percent to the bottom of the STOXX 600 after the firm ended takeover talks with private equity firms Terra Firms, TDR and Starwood.

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