Adidas shares spring higher; French economy expands
European stocks were swept lower Friday, with Swiss bank UBS Group AG among decliners in the wake of its financial update, and the selloff was pushing the market toward a weekly loss.
The Stoxx Europe 600 dropped 1.1% to 377.96, moving toward its lowest close since mid-April, FactSet data showed. No sectors advanced. The index on Thursday slipped 0.1% at 382.32 after a choppy session (http://www.marketwatch.com/story/european-stocks-search-for-direction-in-busy-session-for-earnings-2017-07-27).
The index was on course for a weekly decline of 0.5%, which would extend last week's drop of 1.7%.
"European markets look set to end the week on a softer note after a weak Asia session and some late profit-taking in the tech sector heading into the U.S. close, which saw both the S&P 500 and Nasdaq close lower on the day," Michael Hewson, chief markets analyst at CMC Markets UK, wrote.
"We've seen a veritable earnings bonanza from the tech sector over the past week or so with Netflix, Alphabet and Facebook surprising to the upside, so hopes were high that Amazon would follow suit."
E-commerce behemoth Amazon.com Inc. (AMZN) after U.S. trading closed Thursday posted a larger-than-expected drop of 77% in second-quarter earnings, hurt by the company's spending (http://www.marketwatch.com/story/amazon-earnings-fall-77-shares-drop-2017-07-27).
European technology shares slid a collective 1.6% on Friday, putting in the worst performance among all sectors.
Meanwhile, banking stocks were in focus with a stack of earnings reports coming from the sector.
Earnings roundup: UBS shares were knocked back 2.7% on concerns over margins in its wealth management division despite the lender's 14% profit rise in the second quarter to 1.17 billion Swiss francs ($1.21 billion).
But shares of Credit Suisse Group AG (CSGN.EB) gained 2% after the Swiss lender posted better-than-expected net income of 303 million francs.
Read: UBS, Credit Suisse profit up after strategic shift (http://www.marketwatch.com/story/ubs-credit-suisse-profit-up-after-strategic-shift-2017-07-28)
French bank BNP Paribas SA (BNP.FR) said net profit fell 6.4% to EUR2.4 billion, but the result was better than anticipated as an economic pickup in Europe bolstered business at several of its divisions. Shares were down 0.2%.
Spanish lender Banco Santander SA's (SAN) net profit and net interest income rose in line with figures it outlined this month (http://www.marketwatch.com/story/santander-profit-rises-upbeat-on-banco-popular-2017-07-28-3485019) when it launched a capital increase to fund its cleanup of Banco Popular Espanol SA. Santander shares slipped 0.6%.
Outside of banks, Adidas AG (ADS.XE) rallied 8.2% after the German sports-apparel maker raised its full-year forecast.
Shares of International Consolidated Airlines Group SA (IAG.LN) reversed gains and fell 1.5%. The parent company of British Airways early Friday said second-quarter net profit surged 20% (http://www.marketwatch.com/story/british-airways-parent-iags-profit-soars-2017-07-28) to EUR540 million ($631 million) on rising ticket prices.
Shares of Renault SA (RNO.FR) dropped 5.9% even as the French car maker's first-half profit surged 59% (http://www.marketwatch.com/story/renault-profit-leaps-but-shares-decline-2017-07-28) on increased volume and as it received a larger payout from its holding in Nissan Motor Co. (NSANY)
National indexes: France's CAC 40 index dropped 1.3% to 5,177.11, with Renault a drag and most of the index's other components selling off.
Germany's DAX 30 fell 0.7% to 12,126.56, heading toward its eighth loss in 11 sessions.
The U.K.'s FTSE 100 gave up 0.7% at 7,387.09, and Spain's IBEX 35 was yanked down 0.8% to 10,515.20.
The euro fetched $1.1707, up from $1.1677 late Thursday in New York.
Data: The French economy expanded 0.5% in the second quarter, with statistics agency Insee's first estimate of growth showing exports climbed 3.1% while imports slowed.
Also from France, inflation rose 0.7% in July (http://www.marketwatch.com/story/french-inflation-steady-in-july-2017-07-28), the same rate notched in June.
German consumer prices rose (http://www.marketwatch.com/story/german-consumer-prices-rise-faster-than-expected-2017-07-28) by a faster-than-expected rate of 0.4% in July on the month, and inflation rose 1.5% on the year, according to Destatis.
(END) Dow Jones Newswires
July 28, 2017 06:59 ET (10:59 GMT)