European shares fall amid disappointing bank earnings

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May 15 (Reuters) - European shares fell on Wednesday after arebound the day before as a softer tone from U.S. PresidentDonald Trump calmed investor worries over worsening traderelations between China and the United States.

The pan-European STOXX 600 index .STOXX fell 0.4% by 0743GMT. Bank-heavy Italian .FTMIB and Spanish .IBEX indices ledthe losses after some dour results from their lenders.

Asian shares also found support as weak retail sales andindustrial output data from China raised hopes for more stimulusfrom Beijingurn:newsml:reuters.com:*:nL4N22R0OR.

Germany's DAX .GDAXI - the most sensitive European marketto trade-war fears - dropped 0.4%, even though the latest datashowed Europe's biggest economy returning to growth in the firstquarter of 2019 urn:newsml:reuters.com:*:nL5N22Q6SG.

Autos .SXAP , which were among the leading gainers onTuesday, dropped 1.3%.

Renault's RENA.PA shares fell about 3% after its Japanesepartner, Nissan7201.T , issued a bleak earnings outlook.Volkswagen VOWG_p.DE also fell about 3% urn:newsml:reuters.com:*:nP6N21T029.

Banks fell 0.9%, weighed down by disappointing results.Raiffeisen Bank International (RBI) RBIV.VI and Dutch bank ABNAmro ABNd.AS both missed profit expectations. French bankCredit Agricole's CAGR.PA first-quarter net profits droppedafter two one-off events offset gains in profitability at someof its businesses urn:newsml:reuters.com:*:nL5N22R0WCurn:newsml:reuters.com:*:nL5N22R0R2urn:newsml:reuters.com:*:nL5N22R149.

Bucking the trend was British bank CYBG PlcCYBGC.L , whichjumped 6% to the top of STOXX 600 after posting a first-halfprofit urn:newsml:reuters.com:*:nL4N22R1UF.

LafargeHolcim'sLHN.S rose 1.3% as the world's largestcement maker posted a rise in operating profit. The IT servicesprovider Cancom SECOKG.DE gained after confirming its full-year outlook. urn:newsml:reuters.com:*:nL5N22Q6SG

STMicroelectronicsSTM.BN rose after Kepler Cheuvreuxraised its price target. German publisher Axel SpringerSPRGn.DE gained after JP Morgan upgraded its shares to"overweight" from "neutral".

A more than 5% drop in E.ON EONGn.DE weighed on the energycompany's shares and the utilities sector as Goldman Sachsdowngraded its shares. Its shares also traded ex-divided. (Reporting by Medha Singh in Bengaluru, editing by Larry King) ((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780,outside U.S. +91 80 6749 1130; Twitter: https://twitter.com/medhasinghs; Reuters Messaging: medha.singh.thomsonreuters.com@reuters.net))

This article appears in: Politics , World Markets , Economy , US Markets , Stocks

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