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Europe: Slides in banks, miners drag Europe stocks lower for a 3rd day


[LONDON] European stocks capped their worst three-day decline since February as miners plunged and lenders fell on earnings reports.

UBS Group AG and Commerzbank AG lost at least 7.6 per cent after their quarterly earnings tumbled. 

Miners slumped the most in almost two months, with Anglo American Plc and Glencore Plc down more than 8 per cent, on concern sluggish global manufacturing data indicates weaker demand for metals.

A stronger euro weighed on exporters, and BMW AG led carmakers lower after its profit missed analysts' predictions.

The Stoxx Europe 600 Index slipped 1.7 per cent at 4:39 pm in London, as all 19 industry groups fell. Shares have lost momentum after rallying to a three-month high on April 20.

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The region's benchmark extended losses after its biggest weekly decline since February, as the euro heads for its longest winning streak against the dollar since 2013.

"Weak earnings and a strong euro are the main triggers for the market being down today," said Heinz-Gerd Sonnenschein, a strategist at Deutsche Postbank AG in Bonn, Germany.

"What markets need most right now is to see better numbers from the economic indicators in Europe and a better view from companies on their future earnings."

Investors have focused on financial results for stock cues in recent weeks. Analysts have slashed profit projections for Stoxx 600 firms this year, reversing earlier calls for growth to forecast a decline.

Among other shares active on corporate news, Aberdeen Asset Management Plc tumbled 7.4 per cent after reporting further client withdrawals in the first three months of the year.

Just Eat Plc jumped 4.9 per cent after the UK online takeout service raised its sales and profit guidance. Solvay SA gained 4.3 per cent after its earnings topped estimates.

Spain's IBEX 35 Index and Italy's FTSE MIB Index were the worst performers among western European benchmarks, down at least 2.4 per cent.

The FTSE 100 Index fell 0.9 per cent as UK markets reopened after a holiday. The pound earlier today erased its 2016 decline in an indication that traders see a lower risk of Britain voting to leave the European Union.

"We expect a volatile and shaky market till end of June, given the Brexit vote is coming up, which is currently not priced in the market," said Deutsche Postbank's Sonnenschein.


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