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European stocks dive on disappointing earnings

European stocks dipped into red territory on Tuesday, reversing a strong start, dragging down by weak earnings reports form the airline, banking and construction sectors.

Photo: Reuters

The pan-European STOXX 600 edged 0.4 percent lower and Germany's DAX slid 0.6 percent, while the UK's FTSE 100 added 0.1 percent.

Geberit shares led the decline, sliding 9.1 percent after the Switzerland-based company downgraded its sales forecast and warned about slightly weaker growth in the building industry.

Shares in Lufthansa slumped 8.9 percent to a 17-month trough after the German airline posted profits for the third quarter below forecasts and said it would increase its number of flights more moderately than rivals this season.

BNP Paribas fell to the bottom of the CAC 40, losing 3.5 percent after France’s largest listed bank posted weaker-than-anticipated third-quarter revenues due to weak results of its corporate and investment banking arms.

Solid earnings from BP and Volkswagen helped offset declines. Enjoying higher crude costs, BP leaped 4.2 percent after the oil major’s profits rose to a five-year peak.

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