Europe midday: Stocks mostly lower amid earnings; US data eyed

European stocks were mostly lower on Friday following some disappointing corporate releases, as investors eyed the first release of US growth figures for the third quarter.

At midday, the benchmark Stoxx Europe 600 index was down 0.4% and Germany’s DAX was off 0.3%, but France’s CAC 40 was up 0.2%.

At the same time, oil prices were a little weaker amid ongoing doubts over whether OPEC and non-OPEC producers will agree an output cut to ease the glut. West Texas Intermediate was down 0.5% at $49.47 a barrel and Brent crude was off 0.3% at $50.33.

Banking stocks were in the spotlight, with numbers from UBS, BNP Paribas and Royal Bank of Scotland.

UBS was in the black despite reporting a big drop in third-quarter net profit on the year, while BNP Paribas slipped despite posting better-than-expected revenue and third profit for the third quarter.

Royal Bank of Scotland reversed earlier gains to trade lower after its third-quarter update. The bank reported a loss attributable to shareholders of £469m compared to a profit of £940m in the same period last year as it took a hit from litigation and restructuring costs. However, adjusted operating profit came in at £1.3bn, up from £1.1bn the year before and beating company-compiled consensus of £734m.

Away from banks, Anheuser Busch InBev was sharply lower after it said volumes dropped in the third quarter and cut its outlook for the full year.

Shares in Novo Nordisk tumbled after it downgraded its full-year sales and operating profit guidance on the back of weak US markets and reported a drop in operating profit for the first nine months of the year, while Gemalto also tanked following a weaker-than-expected outlook for next year.

Drug maker Sanofi pushed up after its earnings surpassed expectations and it raised its outlook for the year, but Total slipped despite posting better-than-forecast net profit for the third quarter.

British Airways and Iberia parent International Consolidated Airlines Group gained ground despite reporting a drop in third quarter operating profit before exceptional items to €1.21bn from €1.25bn a year ago and cutting its earnings outlook.

Tullow Oil advanced after receiving a $345m loan to cover April's scheduled amortisation and ensure the company has enough headroom throughout 2017 as it refinances its bank facilities.

Looking ahead to the rest of the day, investors will turn their attention to the first release of third-quarter US GDP figures at 1330 BST.

IG’s Joshua Mahony said: “Today will see markets turn towards the US, with Q3 GDP providing one of the key signals over whether December remains feasible for the Fed to hike. The estimated growth rate of 2.5% would certainly be a boon, raising the chances that Fed members perceive the US economy as strong enough to withstand a bout of gradual monetary tightening.”