EUROPE MARKETS: European Stocks Slide As Bank Shares Suffer After SocGen Earnings

By Carla Mozee and Sara Sjolin, MarketWatch Features Dow Jones Newswires

Apple shares rise in Frankfurt after earnings beat

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European equity benchmarks ended lower Wednesday, as bank shares slumped after France's Société Générale SA posted a drop in profit and metal's related stocks declined after an update from Rio Tinto PLC.

The Stoxx Europe 600 dropped 0.4% to 378.63, partly erasing a 0.6% gain from Tuesday.

Banking blues: SocGen shares (GLE.FR) were shoved down 4% after the France's third-largest bank by assets said second-quarter net profit dropped 28% (http://www.marketwatch.com/story/societe-generale-net-profit-hit-by-legal-costs-2017-08-02) to 1.06 billion euros ($1.25 billion), hurt by litigation costs and persistently low interest rates.

Standard Chartered PLC (STAN.LN) shares fell 6.1% after the London-listed, Asian-focused lender reported a quarterly profit in the first half, but failed to declare a dividend (http://www.marketwatch.com/story/standard-chartered-dividends-remain-suspended-2017-08-02).

Other banking shares were also lower, with shares of Banco Santander SA (SAN) (SAN) down 1.1% and Deutsche Bank AG (DBK.XE) (DBK.XE) 1.1% lower.

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Overall, the Stoxx Europe 600 Banks Index fell 0.9% on Wednesday.

Commodities sag: The European basic resources group fell 1.8%, with pressure in part coming from Rio Tinto PLC (RIO) (RIO) (RIO) as its shares moved 2.8% lower. The iron-ore producer's first-half underlying earnings rose to $3.9 billion, below a Thomson Reuters consensus estimate of $4.19 billion. Rio Tinto did say it will buy back a further $1 billion in shares (http://www.marketwatch.com/story/rio-tinto-ups-buyback-plans-as-profit-jumps-2017-08-02) and that debt has been reduced.

Shares of Glencore PLC (GLEN.LN) lost 1.2% and BHP Billiton (BLT.LN) (BHP.AU) (BHP.AU) gave up 1.1%.

Other stock movers: On the upside, shares of William Hill PLC (WMH.LN) rallied 6.1%. The British bookmaker's profit rose in the first half (http://www.marketwatch.com/story/william-hill-profit-rises-sees-progress-in-2017-2017-08-02) and the company struck an optimistic tone about progress for the year.

Frankfurt-listed shares of Apple Inc. jumped 5.1%. The iPhone maker late Tuesday posted fiscal third-quarter earnings that surpassed Wall Street's targets.

See:Confusion reigns for investors ahead of Bank of England's 'Super Thursday' (http://www.marketwatch.com/story/confusion-reigns-for-investors-ahead-of-bank-of-englands-super-thursday-2017-08-01)

Individual indexes: France's CAC 40 index ended 0.4% lower at 5,107.25, and Germany's DAX 30 lost 0.6% to 12,181.48.

The U.K.'s FTSE 100 shed 0.2% at 7,411.43, while Spain's IBEX 35 dropped 0.7% to 10,513.90.

The euro traded at $1.1868, up from $1.1802 late Tuesday in New York.

(END) Dow Jones Newswires

August 02, 2017 12:16 ET (16:16 GMT)