European Shares Struggle as Mixed Earnings Leave Markets Directionless

European shares remained flat on Friday, poised for a modest weekly loss. Mixed corporate earnings left the STOXX 600 index directionless. Notable movements included Mercedes-Benz falling 2.2%, Capgemini losing 6.1%, and gains from NatWest, Hermes, and EssilorLuxottica.

European shares recorded minimal movement on Friday, setting the stage for a modest weekly loss as mixed corporate earnings clouded the market's direction.

The pan-European STOXX 600 index stood flat at 508.9 points as of 0710 GMT, marking its second consecutive week of losses. This comes after the index hit its lowest point in over two months during the previous session. Mercedes-Benz saw a 2.2% decrease in stock value after narrowing its annual profit margin forecast for its core car division.

The auto sector overall saw a 1.1% decline. Capgemini shares fell 6.1% following an announcement from the French IT consulting group forecasting a drop in annual revenue instead of maintaining stable growth. Conversely, NatWest shares surged by 8% after the British bank agreed to buy Metro Bank's mortgage portfolio for 2.4 billion pounds. Hermes experienced a 2% gain following a 13% increase in second-quarter sales, indicating strong demand for its luxury handbags from wealthy shoppers.

EssilorLuxottica's revenue rose by 5.2% in the second quarter, leading to a 6.4% increase in stock price, buoyed by strong performance from the Europe, Middle East, and Africa (EMEA) region.

(With inputs from agencies.)