Europe open: Stocks in the red as investors digest earnings

European stocks fell in early trade as investors sifted through more earnings releases.

At 0900 BST, the benchmark Stoxx Europe 600 index was down 0.6%, Germany’s DAX was off 0.7% and France’s CAC 40 was 0.1% lower.

At the same time, oil prices retreated, with West Texas Intermediate down 0.4% at $49.53 a barrel and Brent crude down 0.3% at $50.31.

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 profit for the third quarter.

Royal Bank of Scotland rallied 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 market and reported a drop in operating profit for the first nine months of the year, while Gemato 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.

Henry Croft, research analyst at Accendo Markets, said: “With predictions of a December Fed rate hike already rising, will GDP figures surprise to the upside (mirroring those from across the pond yesterday) and cement expectations above 90%?”