# European shares fall as bank stocks, subdued euro-zone growth data weigh Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-04-28 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: European Shares Fall: Bank Stocks Drop, Euro-Zone Growth Meta Description: Read about the European shares falling due to bank stock drops and lower-than-expected euro-zone growth data, impacting market sentiment. URL: https://financedigest.com/european-shares-fall-as-bank-stocks-subdued-euro-zone-growth-data-weighhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-04-28t072659z1lynxmpej3r0afrtroptp4europe-stocks-1736814089188-compressed.jpg) # European shares fall as bank stocks, subdued euro-zone growth data weigh By Shubham Batra (Reuters) -European shares fell on Friday as a drop in bank stocks offset optimism over positive earnings reports, while the euro zone growing at a lower-than-expected rate in the first three months of the year also weighed on sentiment. The pan-European STOXX 600 index slid 0.5% and was set for its first weekly decline in six. [Banking shares](https://www.financedigest.com/banks-oil-majors-lift-british-shares-higher.html "Banks, oil majors lift British shares higher") led declines among sectors on the index, down 2.5%, on track for second week of losses. NatWest slumped 6.0% after the British [bank reported a 20 billion](https://www.financedigest.com/u-s-european-banks-could-lose-over-5-billion-from-risky-buyout-loans.html "U.S., European banks could lose over billion from risky buyout loans") pound fall in deposits in the first quarter. The [earnings expectations](https://www.financedigest.com/bone-growth-stimulators-market-is-expected-to-earn-a-valuation-of-us-2-1-bn-by-2027.html "Bone Growth Stimulators Market is Expected to Earn a Valuation of ~US$ 2.1 Bn by 2027") in Europe remain more elevated than those in the U.S. Thanks to a [pricing out of recession risks in Europe](https://www.financedigest.com/explainer-caps-and-corridors-how-can-europe-contain-gas-prices.html "Explainer-Caps and corridors: how can Europe contain gas prices?"), data has been resilient on the macro front, certainly more resilient than most had expected at this point in the year,” said Karim Chedid, head of investment strategy for iShares EMEA, BlackRock. Miners pulled the basic resources index down 1.1%, as Chinese [demand showed signs of slowing](https://www.financedigest.com/apple-falls-on-fears-of-slowing-iphone-14-demand.html "Apple falls on fears of slowing iPhone 14 demand"). SBB lost the most on the index, falling 11.8% after the Swedish [real estate](https://www.financedigest.com/from-static-office-to-dynamic-brand-hq-five-steps-to-reviewing-your-real-estate.html "From static office to dynamic brand HQ: Five steps to reviewing your real estate") company’s first-quarter net asset value fell 17%. Mercedes-Benz Group AG slid 1.8% after rising in early trade, as the luxury car [maker lifted its outlook](https://www.financedigest.com/jewellery-maker-pandora-lifts-2021-outlook.html "Jewellery maker Pandora lifts 2021 outlook") for the annual adjusted return on sales of its vans division. [Media shares](https://www.financedigest.com/credit-agricole-is-weighing-foray-into-german-car-sharing-media-report.html "Credit Agricole is weighing foray into German car-sharing: media report") were the top gainers on the index, rising 0.4%, recovering some losses from Thursday. Topping gains on the index, Electrolux AB jumped 9.8% after the Swedish home appliances maker posted [sales and operating loss in first quarter above market](https://www.financedigest.com/sales-of-electric-bicycle-motors-market-to-record-exponential-growth-during-2017-2025.html "Sales of Electric Bicycle Motors Market to Record Exponential Growth During 2017 – 2025") expectations. Shares of some of [Europe’s biggest](https://www.financedigest.com/reuters-impact-please-put-a-price-on-carbon-says-europes-biggest-utility.html "REUTERS IMPACT-‘Please put a price on carbon’, says Europe’s biggest utility") drugmakers including Roche Holding AG, Novo Nordisk and GSK Plc rose between 0.5% and 1.2%. Barring [last month](https://www.financedigest.com/fintech-trends-to-look-out-for-during-the-last-six-months-of-2019.html "Fintech trends to look out for during the last six months of 2019"), when the collapse of two U.S. regional lenders sparked concerns of a global [banking crisis](https://www.financedigest.com/swiss-national-bank-raises-rates-says-bank-crisis-stopped.html "Swiss National Bank raises rates, says bank crisis stopped"), European stocks have risen around 9% in 2023 so far. The euro zone grew only marginally in the first three months of 2023 and at a rate lower than [market expectations after stagnation at the end](https://www.financedigest.com/roller-screw-market-ending-up-at-a-valuation-of-around-us-457-5-mn-by-2031.html "Roller Screw Market Ending Up At A Valuation Of Around US$ 457.5 Mn By 2031") of last year, preliminary data showed on Friday. Gross domestic product in the euro zone expanded by 0.1% in the first quarter, below [expectations in a Reuters poll for 0.2% growth](https://www.financedigest.com/hydrolyzed-collagen-market-sales-is-expected-to-clock-high-growth-rate-by-forecast-2028.html "Hydrolyzed Collagen Market Sales Is Expected To Clock High Growth Rate By Forecast 2028"). Compared to a year earlier, [growth was 1.3% against expectations](https://www.financedigest.com/n-butylene-oxide-12-market-expectations-growth-trends-highlighted-until-2028.html "N-Butylene Oxide 1,2 Market Expectations & Growth Trends Highlighted Until 2028") of 1.4%. (Reporting by Shubham Batra in Bengaluru; Editing by Sonia Cheema and Rashmi Aich) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---