European shares dip as corporate results, trade anxiety weigh
The pan-European STOXX 600 index (.STOXX), opens new tab was down 0.3% at 544.87 points, as of 0820 GMT. Other regional bourses were also trading in the red.
EU diplomats said the 27-nation bloc was considering a broader range of counter-measures against Washington, which could target U.S. services or curb access to public tenders in the absence of a deal.
The euro's rise, up as much as 9% in the April-June quarter, will be closely monitored for its impact on profits in the bloc's export-reliant economy, as investors brace for a busy earnings season.
"When you look at nominal growth and the sales of European companies, we expect fairly modest growth there," said Joost van Leenders, senior investment strategist at Van Lanschot Kempen pointing to the weakness of the dollar and its direct translation effect, leading to lowering of earnings expectations.
Chemical stocks (.SX4P), opens new tab led market declines, down 1.5%, with Switzerland's Givaudan (GIVN.S), opens new tab falling 5.8% after missing half-year sales forecast due to a strong Swiss franc.
Dulux paint maker Azko Nobel (AKZO.AS), opens new tab declined 2.5% after lowering its core profit outlook for 2025.
Semiconductor stocks such as Infineon and ASML (ASML.AS), opens new tab fell 3.4% and 2.1%, respectively, after U.S. peer NXP Semiconductor reported weak second-quarter results.
Among individual stocks, Sartorius Stedim Biotech (STDM.PA), opens new tab slipped 9.6%, the biggest decliner on the STOXX 600, after the French lab supplies manufacturer reported its half-year results.
Swiss chocolate maker Lindt & Spruengli (LISN.S), opens new tab fell nearly 7% despite raising its organic sales growth forecast after an EBIT miss.
Britain's Compass Group (CPG.L), opens new tab rose to the top of the index, up 5%, after the food catering firm agreed to buy European premium food services business Vermaat Groep in a 1.5-billion-euro ($1.75 billion) deal including debt.
Norwegian aluminium producer Norsk Hydro (NHY.OL), opens new tab added 3% after trimming its full-year spending despite a quarterly profit beat.
Energy firm Centrica (CNA.L), opens new tab rose 4.3% after the UK approved the 38-billion-pound ($51 billion) Sizewell C nuclear plant in eastern England. The company holds a 15% stake in the project.
Meanwhile, a survey by the European Central Bank signalled on Monday that while euro zone firms remain optimistic about growth prospects, they face profit pressures partly due to trade tensions.
Attention will be on SAP (SAPG.DE), opens new tab, the region's largest company by market cap, with its results due later in the day.
Also on the radar this week are euro zone PMI data and the ECB's rate decision.
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