European shares fall amid disappointing bank earnings

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May 15 (Reuters) - European shares fell on Wednesday after a
rebound the day before as a softer tone from U.S. President
Donald Trump calmed investor worries over worsening trade
relations between China and the United States.
The pan-European STOXX 600 index .STOXX fell 0.4% by 0743
GMT. Bank-heavy Italian .FTMIB and Spanish .IBEX indices led
the losses after some dour results from their lenders.
On Tuesday, Trump called the trade dispute with China "a
little squabble" and expressed optimism about reaching a deal.
His comments helped markets recover from two-months lows after
both side imposed duties on each other's imports. Asian shares also found support as weak retail sales and
industrial output data from China raised hopes for more stimulus
from Beijing Germany's DAX .GDAXI – the most sensitive European market
to trade-war fears - dropped 0.4%, even though the latest data
showed Europe's biggest economy returning to growth in the first
quarter of 2019 Autos .SXAP , which were among the leading gainers on
Tuesday, dropped 1.3%.
Renault's RENA.PA shares fell about 3% after its Japanese
partner, Nissan 7201.T , issued a bleak earnings outlook.
Volkswagen VOWG_p.DE also fell about 3% Banks fell 0.9%, weighed down by disappointing results.
Raiffeisen Bank International (RBI) RBIV.VI and Dutch bank ABN
Amro ABNd.AS both missed profit expectations. French bank
Credit Agricole's CAGR.PA first-quarter net profits dropped
after two one-off events offset gains in profitability at some
of its businesses Bucking the trend was British bank CYBG Plc CYBGC.L , which
jumped 6% to the top of STOXX 600 after posting a first-half
profit LafargeHolcim's LHN.S rose 1.3% as the world's largest
cement maker posted a rise in operating profit. The IT services
provider Cancom SE COKG.DE gained after confirming its full-
year outlook. STMicroelectronics STM.BN rose after Kepler Cheuvreux
raised its price target. German publisher Axel Springer
SPRGn.DE gained after JP Morgan upgraded its shares to
"overweight" from "neutral".
A more than 5% drop in E.ON EONGn.DE weighed on the energy
company's shares and the utilities sector as Goldman Sachs
downgraded its shares. Its shares also traded ex-divided.