European shares dip as mixed earnings roll in, U.S. GDP in focus

European shares slipped on Friday after declines in shares of Glencore and heavyweight banks outweighed advances in healthcare and auto stocks, while investors remained on the sidelines ahead of U.S. economic data for the first quarter.

The pan-European STOXX 600 index was down 0.1 percent by 0740 GMT, eyeing a modest loss at the end of a holiday-shortened week. While all regional indexes fell on the day, Germany's DAX was the only country index on track to post a weekly rise.

The biggest drags on the index were the basic resources sector and the oil and gas sector, weighed down by Britain's Glencore and France's Total, respectively. Glencore dropped after reports that U.S authorities were investigating whether the company and its subsidiaries violated certain provisions of the commodity exchange act.

Energy major Total said its net profit for the first three months of the year fell compared with a year ago due to volatile oil prices and debt costs. Chipmaker Intel Corp reduced its full-year revenue forecast, adding to concerns that an industry-wide slowdown could persist until the end of 2019. This comes amid mixed signals from global chip stocks.

Domestic semiconductor stocks lost some ground with Siltronic, Ams and STMicroelectronics losing between 1.1 percent and 1.8 percent. Meanwhile, France's Sanofi helped bolster the healthcare sector.

Sanofi rose 3.8 percent after returning to growth with higher profits and revenues for the first quarter, led by stellar sales at its rare diseases Genzyme unit. Britain's AstraZeneca Plc advanced after posting first-quarter product sales and earnings ahead of analysts' expectations, benefiting from higher demand for its cancer medicines.

Automakers in the region rose 0.3 percent, lifted by Continental AG, which backed its outlook for the year despite reporting a fall in first-quarter earnings, and French auto parts maker Valeo after Credit Suisse raised its price target on the stock. Renault advanced marginally as it clung to full-year targets even as its first-quarter revenue fell while Daimler's was slightly down after its quarterly profit was hit by a drop in sales of Mercedes-Benz cars.

The banking index fell for a fourth day, at the end of a heavy earnings week for lenders. Britain's Royal Bank of Scotland tumbled after posting lower first quarter profit, hurt by intensifying competition and Brexit uncertainty, while its investment bank also registered poor returns.

Deutsche Bank dropped after cutting its full-year revenue forecast. The numbers come a day after the flagship German lender abandoned merger talks with smaller rival Commerzbank, saying the deal would have been too risky.

U.S. economic data for the first-quarter, due at 1230 GMT, is expected to dispel fears of a recession. Growth worries outside the United States resurfaced this week after South Korea's economy unexpectedly contracted at the start of the year and weak German business sentiment data for April also disappointed. (Reporting by Medha Singh and Agamoni Ghosh in Bengaluru Editing by Gareth Jones)