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New York Markets After Hours

Oct. 16, 2009, 10:24 a.m. EDT

European Stocks Turn Lower After BofA Results

European stock markets turned lower Friday, with banks leading decliners, following a set of downbeat U.S. earnings reports, most notably from Bank of America.

London's FTSE 100 index slipped 0.5% to 5194.78, Frankfurt's DAX index fell 1.1% to 5768.79 and the CAC-40 index in Paris lost 1.3% to 3835.09.

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In the U.S., Bank of America (NYS:BAC) posted its first quarterly loss of the year as greater consumer and commercial loan losses more than offset strong trading profits and a boost in revenue from its recent acquisition of Merrill Lynch & Co.

The news sent bank shares lower across Europe, with Deutsche Bank losing 3% in Frankfurt, Standard Chartered (LON:UK:STAN) falling 2% in London and BNP Paribas (PAR:FR:BNP) slipping 1.4% in Paris.

Bank of America's results, along with Citigroup's on Thursday, showed that the financial sector in the U.S. still has not recovered fully, despite the successes posted at JP Morgan Chase and Goldman Sachs Group earlier this week.

Bank of America wasn't the only company disappointing investors Friday. General Electric said its profit dropped 44% in the most recent quarter, largely because of weakness in its financial unit, GE Capital.

Siemens (FRA:DE:SIE) , another industrial conglomerate, fell 1.5% in Frankfurt.

The dollar, mostly down in recent weeks, rose against the euro and the yen after U.S. government figures showed investment flows into the U.S. increasing strongly.

The Associated Press contributed to this article.

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