Europe open: Shares subdued despite solid regional bank earnings

European stocks struggled for direction at the opening on Wednesday with strong results from Deutsche Bank, Lloyds Banking Group and Santander boosting local markets.

The pan-European STOXX 600 index was down 0.4% in early trading. UK, German and French markets all modestly outperformed the benchmark.

Deutsche Bank shares jumped 6.1% to the top of the Stoxx as strength at its investment bank helped offset headwinds from restructuring and the pandemic. Lloyds rose 4.2% after reporting a better-than-expected profit and lower Covid-19 bad debt provisions. Sweden’s SEB and Spain’s Santander were also higher after quarterly results, while Commerzbank also gained.

Reckitt Benckiser fell despite the company maintaining full-year guidance.

Shares in building supplies group Travis Perkins slumped more than 10% after its shareholders approved the demerger of Wickes Group.

The spinoff plans were originally unveiled by Travis Perkins in December 2018 with a view to focusing on its advantaged trade businesses and simplifying the group to enable a more streamlined cost structure. However, the plans were put on hold in March 2020 when the Covid pandemic took hold.