European Shares Waver Amid Earnings Strain
European shares fell slightly amid earnings disappointments from major companies like Deutsche Bank and L'Oreal. The STOXX 600 index was down 0.1%, pressured by declines in the mining and chemical sectors. Meanwhile, automobile stocks showed resilience. The economic outlook remains uncertain amid tight U.S. elections and central bank policies.
In a volatile trading session on Wednesday, European shares dipped slightly, led lower by declines in mining and chemical stocks. Heavyweight companies such as Deutsche Bank and L'Oreal posted weak earnings, dimming investor sentiment further.
The pan-European STOXX 600 index recorded a 0.1% decline by 0845 GMT, as Deutsche Bank's shares fell 3% following an increase in its loan loss provisions. This weighed on the broader European bank index, which dropped 0.6%. Mining stocks were the hardest hit, with Boliden plunging 3.4% after a UBS downgrade.
While automobiles provided a glimmer of hope with gains nearly reaching 1%, the broader market remained tense amid the U.S. election uncertainty and debates over interest rate cuts by central banks. Earnings season results have also failed to impress, with only 35.3% of STOXX 600 companies beating expectations so far, below the usual rate.
(With inputs from agencies.)
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