Europe midday: Shares stay red as German survey dampens sentiment

European shares slipped into negative territory by midday on Tuesday as investors eyed a US Federal Reserve decision on rates later in the week and digested the latest deluge in corporate earnings, while a German survey showed further deterioration in business sentiment.

The pan-regional Stoxx 600 index was down 0.08% with most major bourses in the red..

The Federal Reserve starts its policy-setting meeting later in the day, with an announcement due on Wednesday. Investors will be looking for any clues on the future direction of monetary policy. Rate decisions are also due from the European Central Bank and Bank of Japan.

Traders will also be looking to US corporate earnings, with tech giants Microsoft and Google parent Alphabet due to release results.

In economic news, German business sentiment deteriorated further in July, according to a survey released by the Ifo Institute.

The business climate index fell to 87.3 from a revised 88.6 in June, coming in below expectations for a reading of 88.0. The expectations index edged down to 83.5 in July from 83.8 a month earlier, while the current situation index printed at 91.3 from 93.7.

In equity news, shares in Idorsia slumped as the Swiss pharma company released results and announced a cost-cutting pan to stem cash burn.

Consumer goods giant Unilever gained as it reported a rise in first-half profits.

Reporting by Frank Prenesti for Sharecast.com