European shares extend losses as Commerzbank slumps to record low

martes 2 de agosto de 2016 06:15 GYT

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* FTSEurofirst 300, STOXX 600 down 1.1 pct

* Commerzbank hits record low after warning

* Banking index worst sectoral performer

By Atul Prakash

LONDON, Aug 2 (Reuters) - European shares slid to a three-week low on Tuesday as some major companies reported poor results, with Commerzbank dropping to a record to lead banks lower after it warned that its earnings would fall this year.

Commerzbank was last down 7.7 percent, the worst performer in the pan-European FTSEurofirst 300 index. The bank said its profits would suffer because businesses are borrowing less and negative interest rates are hurting its revenue .

In addition, investors are worried about its capital position after last week's European Union bank stress tests. Commerzbank was one of the 12 weakest banks among the 51 tested by the European Banking Authority.

The European banking index fell nearly 3 percent, making it the worst-performing sector and taking this year's total losses to more than 30 percent.   Continuación...