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European stocks open mostly lower, earnings in focus; Dax up 0.03%

Published 08/02/2017, 03:32 AM
Updated 08/02/2017, 03:32 AM
© Reuters.  Frankfurt Stock Exchange

Investing.com - European stocks opened mostly lower on Wednesday, as investors focused on a fresh batch of corporate earnings and began to prepare for the Bank of England’s policy statement on Thursday.

During European morning trade, the EURO STOXX 50 slipped 0.21%, France’s CAC 40 fell 0.25%, while Germany’s DAX 30 inched up 0.03%.

Sentiment had strengthened after data on Tuesday showed that gross domestic product in the euro area rose 0.6% quarter-on-quarter in the three months to July and by 2.1% year-on-year, up from 1.9% in the first quarter.

In the financial sector, French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) declined 0.46% and 3.11%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) retreated 0.42% and 1.70%.

Societe Generale SA earlier announced that its net profit dropped 28% in the second quarter, weighed by litigation costs and low interest rates.

At the same time, Commerzbank reported a net loss of €637 million in the second quarter, compared to analysts’ expectations for €556 million and far worse than the €215 million net profit a year earlier.

Among peripheral lenders, Italy’s Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) added 0.12% and 0.37% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) gained 0.43% and 0.45%.

Also in earnings news, Deutsche Lufthansa (DE:LHAG) AG said second-quarter net profit climbed 69%, helped by strong bookings, sending shares up 4.44%.

Elsewhere, shares in Peugeot SA (PA:PEUP) slid 0.35% after the automaker’s owner Groupe PSA closed its acquisition of the Opel and Vauxhall brands from General Motors (NYSE:GM) and installed new management.

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In London, FTSE 100 edged down 0.15%, weighed by RSA Insurance Group PLC (LON:RSA), whose shares plummeted 3.04% even as the company said pre-tax profit for the first-half of 2017 rose to £263 million from £161 million last year.

Mining stocks added to losses on the commodity-heavy index, as Fresnillo (LON:FRES) dropped 0.40% and BHP Billiton (LON:BLT) declined 0.84%, while Glencore (LON:GLEN) lost 0.85% and Rio Tinto (LON:RIO) tumbled 1.93%.

Meanwhile, financial stocks were moderately higher. Shares in HSBC Holdings (LON:HSBA) inched up 0.04%, while Barclays (LON:BARC) and the Royal Bank of Scotland (LON:RBS) added 0.10% and 0.12% respectively. Lloyds Banking (LON:LLOY) underperformed however, as shares slid 0.46%.

BAE Systems (LON:BAES) was one of the top performers on the index, with shares up 2.47% after the company posted stronger-than-expected first half earnings and kept its full-year outlook unchanged.

In the U.S., equity markets pointed to a steady to higher open. The Dow Jones Industrial Average futures pointed to a 0.17% rise, S&P 500 futures signaled a 0.06% uptick, while the Nasdaq 100 futures indicated a 0.74% climb.

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