European Stocks Steady as Bank Declines Offset Gains in Miners

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European Stocks Enjoy Biggest Weekly Gain Since May

European stocks were little changed as banks dropped after their U.S. counterparts reported weaker trading revenues, countering gains in commodity shares.

The Stoxx Europe 600 Index added less than 0.2 percent at the close. The benchmark climbed in the past two days after comments by Federal Reserve Chair Janet Yellen spurred expectations the central bank won’t rush to tighten policy. Stocks are up 1.8 percent this week in the biggest five-day rally in more than two months.

  • A gauge of lenders dropped after Citigroup Inc. and JPMorgan Chase & Co. separately said revenue in their markets divisions dropped in the second quarter 
    • Shares of Commerzbank AG, Credit Agricole SA and UniCredit SpA, all of which have investment-banking units, fell at least 1.2 percent.
  • Construction companies were also among the worst Stoxx 600 performers on Friday, with Skanska AB down 6.2 percent after saying project writedowns in the U.S. and the U.K. will weigh on quarterly profit
  • Stoxx 600 basic-resource shares climbed to a three-month high after South Africa’s Chamber of Mines said the country’s government has suspended implementation of a controversial mining charter that would require a larger stake to be black-owned

— With assistance by Sofia Horta e Costa, and Elena Popina

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