UPDATE 2-European shares dip on disappointing earnings, growth worries

  • Reuters
  • Stock Market News
UPDATE 2-European shares dip on disappointing earnings, growth worries
Credit: © Reuters.

* Nokia drags Europe lower after surprise quarterly loss

* Sainsbury slump, Taylor Wimpey's lower outlook weigh on FTSE

* UBS rises; Swedbank and Barclays drop after results (Updates to close)

By Susan Mathew

April 25 (Reuters) - European shares slipped on Thursday as weak earnings from Nokia and news of failed attempts at mergers added to a downbeat mood on renewed fears of a slowdown in global growth.

The pan-European STOXX 600 index .STOXX finished 0.2 percent lower after an eight-session rally in the benchmark index stalled on Wednesday.

"The sizes of losses seem to be driven primarily by domestic news," said Craig Erlam, senior market analyst at OANDA in London, pointing also to some profit-taking and softer earnings.

Most major country indexes in the region ended significantly lower, with London's FTSE 100 .FTSE down 0.5 percent while Frankfurt's DAX .GDAXI broke a nine-session winning streak with a 0.25 percent decline.

But not all earnings were bad. Stocks in Madrid .IBEX and Zurich .SSMI got a headwind from strong earnings at wind energy producer Iberdrola IBE.MC and lender UBS UBSG.S , respectively.

Reigniting growth fears, data showed the South Korean economy unexpectedly contracted in the first quarter, while Chinese officials warned of protracted pressure on growth, a day after disappointing German Ifo sentiment survey exacerbated concerns about the euro zone's economic outlook. MKTS/GLOB

Finnish telecom network equipment Nokia NOKIA.HE was the biggest drag on STOXX 600, sliding 9 percent and logging its sharpest decline in 18 months, after reporting a surprise quarterly loss. fall knocked the tech index .SX8P 0.7 percent lower following the previous day's 4 percent surge.

Sainsbury's SBRY.L slump after Britain's competition regulator blocked its proposed 7.3 billion pound ($9.4 billion) takeover of Walmart (NYSE: WMT ) WMT.N -owned Asda, and homebuilder Taylor Wimpey's TW.L warning on lower full-year margins, weighed on London's FTSE. .L

The banking index .SX7P shed 0.6 percent, weighed down by Barclays and Swedbank shares.

Britain's Barclays BARC.L slipped after reporting a 10 percent drop in quarterly profit, as its under-pressure investment bank struggled with tough markets. SWEDa.ST fell after posting an estimate-beating first-quarter profit as the Swedish lender admitted to previous shortcomings in combating money laundering. losses were tempered by Switzerland's biggest bank UBS UBSG.S advancing after its first-quarter results surpassed analyst expectations, a day after smaller rival Credit Suisse CSGN.S also posted strong results. gains helped Swiss shares .SSMI buck the gloom and close 0.4 percent higher. Meanwhile, wind energy producer Iberdrola's IBE.MC 4.3 percent jump after it raised its 2019 guidance for net profit and dividend growth, helped Spanish stocks outperform. markets are very much driven by the earnings season and as there are mixed numbers are coming in, investors are taking a little bit of cautious approach," Naeem Aslam, chief market analyst at TF Global Markets (UK) Ltd in London.

Shares of Swiss drugmaker Novartis NOVN.S was the biggest boost to the pan-region index, after Guggenheim upgraded the stock, while many other brokerages raise price target after the drugmaker posted higher first-quarter profit and raised 2019 profit target. heavyweight Bayer BAYGn.DE rose after the drug and farming supplies company posted a 45 percent gain in quarterly core earnings on the back of seed maker Monsanto's acquisition. maker ASM ASMI.AS soared about 10 percent after beating first-quarter targets, while Germany's Dialog Semiconductor DLGS.DE rose more than 2.5 percent after forecasting higher than anticipated profits in the first quarter. the wake of the failed merger talks between Deutsche Bank DBKGn.DE and Commerzbank CBKG.DE , a deal that had faced fierce opposition from the workforce Deutsche shares dipped 1.5 percent while Commerzbank slipped 2.3 percent.

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