European shares fall at opening

European shares fall at opening

European shares fell on Tuesday, with Commerzbank leading the market lower after a profit slump, while mining stocks weakened as they tracked a decline in metals prices.

Commerzbank shares fell 6.4 per cent after the German bank posted a 52 per cent drop in first-quarter net profit, hit by volatile capital markets and the drag on earnings from low interest rates.

However, HSBC rose 2.9 per cent after Europe's biggest bank reported a smaller than expected fall in its first-quarter profit.

On the sectoral front, the European mining index fell 2.4 per cent after prices of major industrial metals fell following data showing activity in China's factories shrank for the 14th straight month in April as demand stagnated, forcing companies to shed jobs at a faster pace.

The pan-European FTSEurofirst 300 index was down 0.5 per cent by 0715 GMT.

However, Britain's FTSE was flat after a public holiday on Monday, with the FTSE propped up by the gains in HSBC, according to a news agency report.

-SRS-

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