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UPDATE 1-Fiat, miners help limit losses in European shares

Published 21/08/2017, 07:22 pm
© Reuters.  UPDATE 1-Fiat, miners help limit losses in European shares
BARC
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INGA
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STLAM
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BNPP
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CAGR
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SOGN
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TTEF
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MAERSKb
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STOXX
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STX50EEX
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LISN
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601633
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STOXXE
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SX7P
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SXPP
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* STOXX 600 down 0.3 pct, euro zone blue-chips down 0.6 pct

* Fiat Chrysler jumps 3.5 pct as Chinese carmaker approaches

* Maersk tops STOXX after selling oil unit to Total

* Miners provide floor for benchmarks as metal prices soar (ADVISORY- Follow European and UK stock markets in real time on the Reuters Live Markets blog on Eikon, see cpurl://apps.cp./cms/?pageId=livemarkets)

By Helen Reid

LONDON, Aug 21 (Reuters) - European stocks fell further early on Monday as geopolitical jitters trickled over from Asian trading, though carmaker Fiat Chrysler and mining stocks helped limit losses.

The pan-European STOXX 600 .STOXX fell 0.3 percent, with euro zone stocks .STOXXE and blue-chips .STOXX50E down 0.5 to 0.6 percent.

Falls followed a fragile Asian session which saw investors shed risky assets as joint U.S. and South Korean military drills began. risk-off move in Europe hit banks .SX7P the hardest, down 0.8 percent with ING INGA.AS and French lenders Societe Generale SOGN.PA , BNP Paribas BNPP.PA and Credit Agricole CAGR.PA among top losers.

After recent losses, the STOXX 600 was down 6 percent from its mid-May 20-month peak.

Strong metals prices helped cap benchmark losses, however, with mining stocks .SXPP up 0.3 percent after London zinc rose to its highest in a decade on robust Chinese demand for steel. also boosted a few of the best-performing stocks.

Fiat Chrysler FCHA.MI shares jumped 3.2 percent after Chinese carmaker Great Wall 601633.SS asked for a meeting with the Italian carmaker with the aim of making an offer for all or part of the auto group. shares have gained more than 13 percent in the past week since rumours first emerged that a Chinese buyer may be interested in the firm.

Maersk MAERSKb.CO gained 4.1 percent to lead European stocks after the firm agreed to sell Maersk Oil to French oil major Total TOTF.PA for $7.45 billion. see the deal as free cash flow neutral over 2018/19, and accretive thereafter as capital expenditure falls closer to $500 million per annum," analysts at RBC Capital Markets said.

Total shares on the other hand pulled back 0.7 percent.

With the second-quarter European reporting season drawing to a close, 60 percent of companies have either beaten or met expectations, though share price reactions have been muted overall.

"In isolation the results appear quite good," said Barclays (LON:BARC) analysts looking back at the earnings season.

"However investors appear disappointed that the results were not as good as the record-breaking first quarter season," they added, saying concerned investors taking profits could be behind the lukewarm reaction in share prices.

Swiss chocolatier Lindt & Sprungli LISN.S gained 1.4 percent after UBS upgraded it to a buy, saying its premium product offering helps it benefit more from lower cocoa input costs than peers.

"Despite a trend towards healthy snacking, Lindt's sales growth should be stronger than the market assumes, given its products are perceived as an indulgence," UBS analysts added.

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