European stocks were mixed on Monday as investors responded to late Friday stress test results on the region's 51 largest banks.
The FTSE 100 was recently down 0.14% at 6,715.24 as gains among miners, led by BHP Billiton (BHP) and Anglo American, failed to offset other decliners, including Royal Bank of Scotland (RBS) and Barclays, (BCS) which were each down more than 2% in response to the stress tests. Both anks' capital buffers held comfortably above the regulatory minimum under the European Banking Authority's hypothetical "adverse scenario," but RBS' capital evaporated at among the fastest rates of the lenders tested.
In Frankfurt the Dax was recently little changed, up 0.02% at 10,339.98 and in Paris the Cac 40 was down 0.63$ at 4,411.83.
S&P 500 mini futures were recently up 0.05%.
The EBA's adverse scenario included GDP shrinkage for two consecutive years. Almost all banks emerged with a common equity Tier One capital ratio above the minimum 4.5% floor, though Monte dei Paschi was wiped out under the adverse scenario. However, the Italian lender had shortly before the results came out announced a plan to sell up to €5 billion ($5.6 billion) of shares and hive off loans with a book value of €27.7 billion into a securitization vehicle at one-third of their value.
Monte dei Paschi was recently up more than 3%, and UniCredit, which clocked up a capital ratio of 7.1%, was up more than 5% after a volatile morning.
Allied Irish Banks, the second worst performer, dipped on the opening but was recently unchanged. Deutsche Bank, (DB - Get Report) which emerged with a 7.8% common equity Tier One ratio , was down close to 2%.
Austria's Raiffeisen Bank, one of the weakest performing of the lenders tested, was down more than 7%,
Meanwhile, Millennium BCP, Portugal's largest listed bank, was up about 4% in Lisbon after China's Fosun offered to buy a stake of almost 17%.
In Amsterdam, Heineken was down more than 3% as its warned of tough comparatives and currency headwinds in the second half, even as it kept its full-year profit outlook intact. First-half profit beat expectations.
International Consolidated Airlines (ICAGY) was down more than 3% after Qatar Airways lifted its stake to 20% from 15.7% but said it wouldn't take any more.
News publisher Trinity Mirror was up 6% after reporting a 42% increase in first-half pretax profit.
Manufacturing-sector purchasing managers' data for Italy and Spain showed the indices unexpectedly fell in July from June. However, a reading from Germany beat an earlier estimate, putting the eurozone manufacturing sector PMI as a whole at 52.0, above the 51.9 initially forecast by Markit.
But in the U.K. the manufacturing PMI tumbled more than initially reported by Markit to the lowest point in almost three and a half years. The pound was recently down 0.36% against the dollar at $1.3182.
The euro rose 0.29% against the pound to €0.8471.
Brent crude was recently down 1.29% at $42.97 a barrel.
After far weaker-than-expected U.S. GDP figures on Friday, Federal Reserve Bank of New York President William Dudley said monetary policy makers should be cautious when setting rates but warned against complacency among those who are ruling out a rate rise later this year.