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Europe: Weak data weighs on European shares

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European shares fell back on Tuesday after weak data from China and Germany added to a spate of less encouraging news on the global economy but the banking sector offered a ray of light after strong results from Austria's Raiffeisen Bank.

[LONDON] European shares fell back on Tuesday after weak data from China and Germany added to a spate of less encouraging news on the global economy but the banking sector offered a ray of light after strong results from Austria's Raiffeisen Bank.

The pan-European index fell back 0.1 per cent while Germany's DAX declined 0.2 per cent after Europe's biggest economy reported first-quarter growth slightly slower than expected.

An 81 per cent increase in first-quarter net profit sent Raiffeisen shares up, while Commerzbank led the DAX after reporting quarterly pre-tax profit ahead of analysts' expectations.

Credit Agricole added to the optimism around banking stocks. The French bank's shares had fallen at the open but recovered to trade up 1.3 per cent after quarterly profit fell short of expectations.

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Dealmaking, which has been ubiquitous in European markets this year, continued apace with Worldline agreeing to buy the payments arm of Swiss stock exchange operator SIX for US$2.75 billion.

Meanwhile Iliad shares sank 16 per cent to the bottom of the STOXX after a management reshuffle and weak first-quarter results.

REUTERS