2014.07.0806:12:08UTC+00European shares depreciate on looming earnings season

European shares are down for the third consecutive day as investors appraise equity valuations prior to the upcoming earnings season reports.

The Stoxx Europe 600 sheds 0.3% to 343.86, 8:29 am, London time. In the previous week, the index gained 1.8% buoyed by better-than-expected US non-farm payrolls data while commodity producers improved.

Alleged US sanction violation continue to aggravate banks as Commerzbank AG is put in the spotlight, suspected to be the next bank to be investigated, driving its shares to a 3.7% loss. Alcoa Inc. brings the market to the second-quarter earning season report today where companies under S&P 500 are seen to have increased by 5% within the three month from April to June.

UK’s FTSE 100 is down 0.44% or 31.13 pips to 6,792.38. Germany’s DAX Index and France’s CAC 40 Index decline by 0.51% or 50.28 pips to 9,855.79 and 0.38% or 16.63 pips to 4,389.13.

Broker at Tradition, Mike Reuter commented that he believes that stocks of the Commerzbank will take a fall unless they do the same as the BNP and pay a large fine. He adds that he doesn't think that the Commerzbank will be hit severely from all the US Investigations.