Europe midday: Stocks lower as earnings dominate; Idorisia slumps

European shares were lower on Tuesday amid another corporate earnings dump while investors also digested news that UK government borrowing had hit almost 100% of GDP.

The pan-European Stoxx 600 index was down 0.54% at 0830 BST with all major regional bourses lower. The UK’s FTSE 100 continued to trade below 7,900, down 0.51%.

The British government borrowed £21.5bn alone in March, up £16.3bn year-on-year for its second-highest March reading since records began in 1993.

Public sector net debt at the end of March was £2.53 trln or around 99.6% of GDP with a debt-to-GDP ratio at levels last seen in the early 1960s.

Corporate earnings were front and centre with a slew of results and updates published across the continent.

Swiss pharma company Idorsia slumped as it reported weaker first-quarter earnings.

Compatriot bank UBS fell after posting a 52% net profit decline, while Spanish rival Santander was also lower despite net profit edging ahead.

Consumer goods giant Nestle made gains after narrowly beating sales estimates but warning of a 0.5% volume decline. The company said it had hiked prices by 9.8% in the quarter.

Primark owner AB Foods fell as it predicted flat profits this year as consumers tightened their belts amid the cost of living crisis.

Whitbread surged as its Premier Inn hotel chain reported a sharp rise in bookings as Covid restrictions were finally lifted.

Swiss pharmaceutical firm Novartis gained after beating sales estimates and raising its full-year earnings outlook from a “mid-to-high single digit” increase to a “high single digit to low double digit.”

Reporting by Frank Prenesti for Sharecast.com