European Stocks Slide on Media Tumble and U.S. Rate Rise Bets

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Media Companies Drag on the Stoxx 600

European stocks fell for a second day, with media shares leading declines, while U.S.-payrolls data fueled bets the Federal Reserve will raise rates.

The Stoxx Europe 600 Index dropped 0.9 percent to 397.07 at the close. Shares extended losses in late trading, cutting their weekly gain to 0.2 percent. Greece’s ASE Index, which reopened on Monday after a five-week suspension, added 1.5 percent, paring its weekly slide to 15 percent. Coca-Cola HBC AG contributed the most to Greek gains today, rising 7 percent.

“Stocks seek growth,” said Daniel Weston, chief investment officer of Aimed Capital in Munich, Germany. “With jobs numbers coming in as expected, and a rate rise likely to come, it is unsure at present what the drivers are to own stocks during this summer period.”

U.S. employers added 215,000 jobs in July, lower than the 225,000 predicted by economists. Still, the unemployment rate held at a seven-year low of 5.3 percent, a sign of healing in the labor market that’s keeping the Fed on the path toward raising interest rates as soon as next month.

Broadcasters including the U.K.’s ITV Plc, Germany’s ProSiebenSat.1 Media SE and Italy’s Mediaset SpA fell at least 3.4 percent after concern that advertising will decline as viewers shift to online programming triggered an overnight selloff in the U.S. Sanofi and Novo Nordisk A/S contributed the most to a drop in drug companies.

Among stocks active on corporate news, Nokian Renkaat Oyj slipped 1.5 percent after the Nordic region’s largest tiremaker downgraded its outlook following disappointing second-quarter profit and sales.

Banca Monte dei Paschi di Siena SpA jumped 8.8 percent after the lender, which tapped Italy for two bailouts since 2009, swung to a profit in the second quarter.

Anglo American Plc and Glencore Plc rose at least 2 percent, leading a rebound in commodity producers.

BP Plc and Total SA pushed a gauge of energy shares higher, even as oil reversed an earlier gain.

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