European shares dip as lower commodity prices weigh

European shares fell on Friday and were set for weekly losses, hurt by lower commodity prices and as a rout in global technology shares extended, while investors assessed more earnings updates.

The pan-European STOXX 600 index fell 0.6 per cent by 0715 GMT, slipping to a more than two-week low, amid a broader selloff across sectors.

Travel and leisure shares led the losses with a 2.5 per cent drop, driven by declines in Evolution after it maintained its full year guidance, while miners were down 1.8 per cent on lower commodity prices due to the lack of Chinese stimulus measures.

German shares were down 0.6 per cent after producer prices in the regions largest economy fell by 1.6 per cent on the year in June, in line with analysts' expectations in a Reuters poll.

Sartorius was down 13.6 per cent after the pharmaceutical equipment supplier cut its full-year guidance.

On the flip side, Danske Bank, Denmark's biggest lender, surged 6.2 per cent as it beat second-quarter net profit expectations, helped by strong credit quality and higher net interest income and announced an interim dividend for shareholders.

Electrolux climbed 6.9 per cent after the world's second-biggest appliances maker posted a quarterly operating profit above estimates, helped by cost cutting.