* STOXX 600 down 0.6 pct
* Lloyds falls after results
* Commodities also weigh
* Though banks help Spain’s IBEX (Adds detail and quotes, updates prices)
By Kit Rees
LONDON, Oct 26 (Reuters) - European equities edged lower on Wednesday as investors digested a slew of earnings reports, with commodity-related stocks and British bank Lloyds under pressure, though well-recieved results from Santander supported Spanish stocks.
The pan-European STOXX 600 index was down 0.6 percent, after a pullback in oil prices and miners were hit by a 7.2 percent drop in Antofagasta’s shares, putting it on track for its biggest daily loss since May.
Antofagasta said that it saw its full year copper production towards the lower end of guidance, and expected output in 2017 to fall.
“Overall, we see these results as a negative, reflecting the challenging operating conditions at some operations. 2016 production guidance remains high, in our view, while a potential drop in output in 2017 is disappointing,” analysts at Shore Capital Markets said in a note.
British banking stock Lloyds also slid 3.1 percent after it too reported results.
Laith Khalaf, senior analyst at Hargreaves Lansdown, said that the lender’s PPI costs were a little higher than some investors had been expecting, and also pointed to a increase in Lloyds’ bad loan impairments.
“It is that very (PPI) payment which has taken a big bite out of profits and, potentially, prevented Lloyds from taking as much advantage as possible from what still looks set to be a delayed hit from the referendum outcome,” Ken Odeluga, market analyst at City Index, said in a note.
Earnings weighed on chemical company Novozymes, which slumped nearly 13 percent and was the biggest faller on the STOXX 600 after posting a lower-than-expected third quarter operating profit and trimming its full-year outlook to the lower end of its previous range.
It was joined by Finnish packaging firm Huhtamaki , which fell 9.1 percent after its own update fell short of expectations.
Spain’s IBEX, however, was a relative bright spot, trading flat in percentage terms after Banco Santander beat forecasts, sending shares up 1.2 percent. nL8N1CW0OR]
Logitech jumped 13.7 percent after it saw a rise in Q2 retail revenue, while Kering also rose 7.3 percent after its Gucci unit posted its first double digit growth since 2012.
“The most significant recent repositioning has been Gucci’s move, under creative director Alessandro Michele, from a marketing-driven to a more creative direction,” analysts at Goldman Sachs said in a note.
“This has begun to deliver strong sales acceleration ... which we argue should persist as this approach is rolled out across the range.” (Reporting by Kit Rees; Editing by Jon Boyle)