European equities fell on Friday and headed for a fourth straight week of losses as worries about corporate earnings and the pace of economic recovery pressured banks, while weaker commodity prices hit oil and mining shares.
By 1114 GMT, the FTSEurofirst 300 index of top European shares was down 0.8 percent at 816.87 points after gaining 0.8 percent in the previous session. It has fallen 3 percent this week, but is still up 26 percent after a record low in early March.
Financial stocks were among the top losers on the index, with Allied Irish Banks, Bank of Ireland, Swedbank, HSBC and UniCreidt down 1.8 to 13.3 percent.
Commerzbank was flat after gaining earlier. It saw losses narrow in the second quarter versus the first as business with medium-sized companies and retail clients achieved good results, said Markus Beumer, a board member of the bank.
Energy stocks slipped, also tracking a 1.3 percent fall in crude prices. BP, Royal Dutch Shell, BG Group, Tullow Oil, StatoilHydro and Total shed 0.6-1.4 percent.
Sentiment also weakened following a downbeat earnings outlook from U.S. oil major Chevron after Wall Street close on Thursday, just a day after aluminium giant Alcoa posted better-than-forecast results.
"We are still in a place where risk aversion is being taken into account again and the risk of default in the real economy and the corporate sector is going to be re-appraised," said Valerie Plagnol, chief strategist at CM-CIC Securities.
"On the whole, it's hard to be really bullish. We are caught in a situation where indeed we have left behind us probably the worst of the recession. Nevertheless, macroeconomic numbers are very weak," she said.
With the summer holidays kicking off in the northern hemisphere and the second-quarter earnings season beginning, market and fund flows suggested many investors were heading to the sidelines, according to fund tracker EPFR Global.
Stocks globally enjoyed a powerful rally in the second quarter but have since run out of steam.
Miners felt pressure as prices of key base metals slipped. BHP Billiton, Anglo American, Antofagasta, Xstrata and Eurasian Natural Resources fell 0.2 to 3.2 percent.
Anglo-Australian miner Rio Tinto fell 3.5 percent. Chinese security officials accused four detained staff of the company of bribery.
MIXED ECONOMIC DATA
Global macroeconomic data continued to paint a mixed picture and forced investors to trade cautiously, analysts said.
Japanese wholesale prices fell at a record pace in June, showing that the world's No. 2 economy is still struggling with slack demand despite some recent tentative signs of improvement in its manufacturing sector.
But French industrial output posted a surprise rise in May, helped by production of energy and cars.
"There is a lack of impulse, full stop," said Giuseppe-Guido Amato, strategist at brokerage Lang & Schwarz in Germany.
German chipmaker Infineon was up 0.8 percent. It plans to raise 725 million euros ($1.01 billion) in a capital increase with the backing of U.S. investor Apollo, which could get a stake of up to 29 percent.
The DJ STOXX Telcom Index dropped 1.2 percent, with Telekom Austria falling 2.9 percent, as UBS pointed to uncertainty about its outlook for the current year following an interview with the company's chief executive.
Later in the day, investors will be focus on U.S. macroeconomic data, with trade figures due at 1230 GMT.
French carmaker Renault fell 1.8 percent. Its CEO Carlos Ghosn expects 2010 to be "as difficult as 2009" as the crisis in the worldwide auto industry continues, he told Europe 1 radio.
But retailers were on the positive side. Morrison, J. Sainsbury, Marks & Spencer and Tesco were up 0.8-1.7 percent.
Around Europe, UK's FTSE 100 index, Germany's DAX and France's CAC 40 fell 0.7-0.8 percent.
