European shares edge lower as banks extend losses

European shares edged lower in early trading on Thursday, with banking stocks on the backfoot again while an earnings miss at Ahold Delhaize put its shares on course for their worst day in seven months.

The pan-European Stoxx 600 index was down 0.2 per cent by 0815 GMT after closing 0.2 per cent lower in the previous session.

The European banking index, down 0.9 per cent, was the worst performing sector index. The beaten-down sector is firmly back on the radar as a spike in bond yields on the back of improved growth expectations has brightened the case for bank profits.

Shares in Ahold Delhaize fell more than 3 per cent after the US-European supermarket operator missed analyst expectations for third-quarter results due to weakness at its US grocery chains.

However, South African financial services group Investec rose 3.8 percent after reporting a 20 per cent rise in half-year profit, buoyed by a strong showing at its asset management and wealth arms.

Reuters