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Tuesday, 03 August 2021

European shares hit two-week low as banks, poor earnings weigh

Reuters , Tuesday 2 Aug 2016
European shares hit two-week low as banks, poor earnings weigh
(File Photo)Brokers work in the trading room of the stock market in Frankfurt, Germany, Wednesday, March 16, 2016.Photo:AP

European shares hit a two-week low on Tuesday following poor results from some firms, including Metro and chipmaker Infineon, and another day of weak performance for the banking sector.

The STOXX 600 fell 0.8 percent, its lowest level since July 19.

Commerzbank fell 7 percent, the worst performer on the index, after warning that its earnings would fall this year.

Credit Suisse and Deutsche Bank fell 4.7 percent and 2.9 percent respectively after STOXX said they will be dropped from the STOXX Europe 50 index from Aug. 8.

Europe's banking index fell 2.3 percent to its lowest in three weeks.

German retailer Metro fell 5.4 percent after reported an unexpected loss in its fiscal third quarter largely due to restructuring costs at its core wholesale business in Germany, Belgium and Italy.

Infineon, whose chips activate car airbags and enable cruise control, were down more than 4 percent after its profit and sales missed predictions due to a drop in demand at its power management and card payments businesses. 

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