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http://www.bloomberg.com/news/artic...-as-boj-holds-off-stimulus-boost-lloyds-drops

The bad news just keeps coming...

European stocks declined, snapping a two-day gain, after the Bank of Japan unexpectedly refrained from increasing stimulus measures.

Banking results were also at the fore. Banco Bilbao Vizcaya Argentaria SA slid 5.9 percent after its quarterly earnings tumbled 54 percent, missing estimates. Lloyds Banking Group Plc lost 2.1 percent after its revenue and net income fell. Deutsche Bank AG rose 2.9 percent after it posted a surprise profit.

The Stoxx Europe 600 Index declined 0.8 percent at 8:16 a.m. in London. A rebound since a February low has lost steam in the past week as the earnings season picked up pace. After reaching a four-month high on April 20, the benchmark fell for three sessions, before a two-day advance through yesterday.


Investors seeking impetus from central-bank policy to send shares higher were disappointed by the Bank of Japan’s lack of action, after a slight majority of economists surveyed by Bloomberg had forecast it would respond to a strengthening in yen. In the U.S., the Federal Reserve held off raising rates yesterday for a third straight meeting since they began tightening in December, and officials reiterated a gradual pace in future increases.

The earnings season is well under way, even as concerns grow for profit prospects in Europe. Analysts now project a decline for Stoxx 600 companies in 2016, reversing calls for growth early this year. The regional gauge is down 5.5 percent this year.

Among other shares active on corporate news, Airbus Group NV dropped 4.2 percent after reporting a drop in earnings and saying fresh problems with a transport plane could hurt future profit. Sanofi retreated 1.2 percent after making an unsolicited offer to buy Medivation Inc. for about $9.3 billion in cash.

Electrolux AB jumped 7.9 percent after posting profit that beat analysts’ estimates and raising its forecast for growth in the U.S. market.