European shares fell on Wednesday, weighed down by bank stocks, as corporate earnings took centre stage ahead of a packed schedule, which includes central bank announcements, key data and the approaching August 1 tariff deadline this week.
German sportswear brand Adidas warned that higher U.S. tariffs would add around 200 million euros ($231 million) to its costs in the second half, sending shares tumbling 7% to a near four-month low. Peer JD Sports fell 0.8%.
Banks index dipped 0.9% a day after hitting its highest since September 2008. Swiss bank UBS rose 3% after reporting its second-quarter profit more than doubled from last year’s, while HSBC Holdings fell 5% on posting first-half pretax profit below estimates.
The pan-European STOXX 600 index dropped 0.3% by 0720 GMT. Regional bourses were mixed, with Germany’s blue-chip DAX shedding 0.3%, while France’s CAC 40 rising 0.1%.
Miner Rio Tinto dropped 1.4% after reporting its smallest first-half underlying profit in five years on subdued iron ore prices.
The outlook for European corporate health has improved, earnings forecasts showed on Tuesday, after the European Union struck a framework trade deal with the U.S. on Sunday following weeks of negotiations.
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