European stocks resumed an intraday decline amid earnings reports from BHP Billiton Ltd. and Standard Chartered Plc.
BHP led miners to the worst performance among peers after reporting a profit drop and slashing its payout for the first time in 15 years. Standard Chartered Plc slid 5.4 percent after the lender that gets most of its revenue from emerging markets posted a surprise annual loss. InterContinental Hotels Group Plc gained 3.9 percent after announcing a special dividend of $1.5 billion.
The Stoxx Europe 600 Index lost 0.5 percent at 9:51 a.m. in London. The benchmark earlier erased a drop of as much as 1.1 percent.
“Earnings have been mixed,” said Pierre Mouton, who manages about $9 billion at Notz, Stucki & Cie. in Geneva. “A stronger euro in the fourth quarter hasn’t helped and we know that emerging markets don’t help. Still, in some consumer cyclical and IT companies, that’s been OK. I’m still concerned about cyclicals because the global picture hasn’t changed.”
A gauge of mining shares is down after rebounding 35 percent from last month’s low to its highest level since Dec. 3. It’s the only industry group to post gains in 2016. Buoyed by their gains, the Stoxx 600 recouped as much as 9.3 percent since falling to a 2013 low earlier this month amid worries over global growth, a rout in oil and banks and dissipating faith in central-bank support.
Banca Monte dei Paschi di Siena SpA and Banca Popolare SC led gains in lenders today. Banks are the most battered Stoxx 600 group this year amid concern over bad loans at Italian peers, disappointing earnings and questions over Deutsche Bank AG’s creditworthiness. The selloff has been overdone, as shares are pricing in a too-high chance of a crisis or economic recession, Credit Suisse Group AG strategists wrotein a note.
A report today showed Germany’s business confidence fell for a third month, missing economists’ estimates. The DAX Index slid 0.9 percent, led lower by carmakers and utilities.