European stocks head lower after upbeat open

European shares were lower in late UK morning trade after a positive open. Disappointing earnings updates weighed on investor sentiment, which failed ti improve on upbeat European retail sales data.

European stocks head lower after upbeat open

European stocks were lower in the late UK morning, as disappointing earnings updates weighed on investor confidence.

The EUROSTOXX 600 was little changed, down just 0.04%, while the EUROSTOXX 50 was 0.13% lower.

Regional bourse activity was a little mixed, meanwhile. The German DAX was up 0.1%, the French CAC was 0.1% lower and the Spanish IBEX was off 0.36%.

Big fallers push indices lower

A disappointing update from German car maker BMW, pushed its share price 2.2% lower. The company reported a 5.9% fall in third-quarter earnings.

A cautious fourth-quarter outlook from UK-based chip-maker, Dialog Semiconductor, also spooked investors Tuesday. The share price was down almost 8%.

Danish transport and energy conglomerate A.P. Moller Maersk, lost 5.2% in Tuesday morning trade. And, shares in Spanish renewable energy manufacturer Siemens Gamesa, slid 7.4%. Updates from both firms weren’t positive enough to encourage investors.

Despite the declines, some shares gained welcome investor attention. Two London-listed companies were making good gains ahead of midday. Tullow Oil was up some 3.1%, while Imperial Brands gained 2%.

Investors not impressed with retail sales data

Aside from the company earnings updates, the latest European retail sales data from Eurostat, also failed to buoy sentiment.

The European Union’s statistics office reported that retail sales among the 19 countries that use the euro, rose 0.7% on the month in September and by 3.7% on the year. The strong gain tallies with the healthy third quarter economic growth figures.

Eurostat data showed sales of clothing, furniture and electrical goods all contributed to the increase. A willingness to purchase goods, underscores improved consumer confidence across Europe, as the economic recovery continues to gather pace.

The August retail sales data were also revised upwards. Sales fell 0.1% on the month, after an initial calculation of a 0.5% decline. The annual gain, meanwhile, improved to 2.3% from 1.2%.

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