European shares are mainly lower in the early afternoon Friday, as investor sentiment is weighed down by some disappointing earnings releases. Concerns over the Italian budget and Brexit, also continue to affect investor decisions.
By 1350 BST, the EUROSTOXX 600 was down 0.32%, as was the EUROSTOXX 50. Regional bourses, meanwhile, were a little mixed. The German DAX fell 0.49% and the French CAC was 0.89% in red, however, the Spanish IBEX rose 0.08%.
Italian banks lose ground
Italian bank stocks are in negative territory Friday, as the Italian government continues to defend its budget, in the face of sustained unease from the EU, over the country’s spending plans.
The EU wrote a letter to Rome, highlighting “particularly serious non-compliance with the budgetary policy obligations laid down” in European rules. The Italian Government must reply to the European Commission by Monday.
UniCredit shares lost 2.49% to trade at €11.35, while Banco BPM shares are off 3.47% at €1.69.
Elsewhere, auto-related stocks lost ground, following a disappointing third quarter earnings release from tyre maker, Michelin. The French company cut its market growth forecast, citing slowing Chinese demand.
Michelin shares slid 9.71% to trade at €89.30. Meanwhile competitor Continental AG shares fell 5.12% to €130.70.
Other stock movers
Elsewhere, there were other stock movers of note across the European indices, Friday.
Ryanair shares are lower, despite the news the budget Irish airline is making more progress over agreements with the unions representing its pilots across the continent. The failure of a number of smaller airlines during this period, appears to be encouraging more agreement between the airline and the unions, during talks.
And, Skanska shares sank 10.16% to SEK145.05 after the Swedish-based builder reported a fresh US writedown, related to two private partnership projects contracts in the US. The business said it will make some changes to the way it operates with regards to bidding for contracts in the US.