European shares edged lower on Tuesday as disappointing earnings reports from Diageo and Bayer took the shine off a jump in growth-linked cyclical stocks, while investors awaited signs of progress on more U.S. fiscal stimulus.
The world’s largest spirits maker, Diageo Plc, slid 5.9% as it reported a bigger-than-expected decline in underlying net sales as demand for its whiskeys, vodka and gin fell in all markets except North America.
Energy major BP’s stock jumped 5.8% after it cut its dividend in a widely expected move and reported a record $6.7 billion loss in the second quarter as the coronavirus crisis hammered fuel demand.
Leading gains among sectors, the oil & gas sector rose 2.1%, while automakers, banks and travel & leisure rose between 1.5% and 2%.
The pan-European STOXX 600 was down 0.2% by 0727 GMT, although eurozone blue-chip stocks gained 0.5%.
German drugs and pesticides group Bayer fell 3% as it reported a 9.5 billion euro ($11.2 billion) net loss for the second quarter, following a $10.9 billion settlement of U.S. lawsuits claiming that its weedkiller Roundup caused cancer. – Reuters