European shares buck global rally as dour auto earnings weigh By Reuters

(Reuters) – European shares opened lower on Thursday, weighed down by a set of dour earnings from automakers and bucking the global rally that was sparked by the U.S. Federal Reserve opening the door to start lowering interest rates in September.

The pan-European index lost 0.2% by 0712 GMT.

The auto sector fell the most, dropping 1.4% following a 4% slump in BMW (ETR:) after reporting lower-than-expected quarterly profit margins in its auto business.

Volkswagen (ETR:), Europe’s top automaker, fell 1.8% after reporting a 2.4% drop in its second-quarter operating profit, while Daimler (OTC:) Truck lost 4.2% after cutting its full-year revenue outlook.

Those results pulled the German down 0.4%.

Societe Generale (OTC:) slumped 6.1% after the French lender reported its second-quarter results.

On the flip side, Rolls-Royce (OTC:) surged 10.3% after the aerospace engineer raised its profit guidance and resumed its dividend payouts.

Shell (LON:) ticked up 1.5% after the oil giant’s second-quarter profit beat estimates.

Anhueser-Busch InBev rose 3.3% after the beer giant reported a forecast-beating core profit for the second quarter.

The Fed held interest rates steady but opened the door to a rate cut in September. The Bank of England’s policy decision is due later in the day.