Europe open: Stocks in the red as luxury goods stocks slide

European stocks edged lower in early trade as investors sifted through earnings, with luxury stocks under pressure.

At 0900 BST, the benchmark Stoxx Europe 600 index was down 0.3%, Germany’s DAX was 0.2% weaker and France’s CAC 40 was off 0.5%.

At the same time, oil prices were a little firmer as the OPEC and non-OPEC meeting in Doha edged closer. West Texas Intermediate and Brent crude were up 0.4% to $40.52 a barrel and $43.00, respectively.

“Alcoa reported mix results delivering a beat on earnings but a miss on revenues. Whilst German inflation data from earlier this morning came in as expected overall their impact on market action and the ECB is likely to be miniscule as not enough time has passed yet since the ECB has lowered rates and implemented new measures back in March,” said Markus Huber, a trader with broker City of London Markets.

“Concerning the US earnings season, expectations have come down substantially over the past weeks and months mainly due to slowing global growth with little change expected in the months ahead. Because of this many are worried that sooner or later weak corporate profits will drag stocks down too as many studies are pointing out that in the long-term share prices will follow earnings.”

Earlier, figures from Destatis showed German consumer prices rose 0.8% in March from the previous month, in line with the initial estimate and expectations.

Consumer prices were up 0.3% compared with March 2015, having been flat in February.

In corporate news, luxury goods company LVMH traded lower after its first quarter results missed expectations, with London-listed peer Burberry also in the red.

AstraZeneca was under the cosh after Goldman Sachs downgraded the stock to ‘sell’ from ‘neutral’ saying current long-term estimates were overly optimistic and the valuation was high.

Whitbread was also in the doldrums after announcing the departure of Christopher Rogers from the posts of managing director of coffee shop chain Costa and executive director of the firm’s board.

On the upside, Anglo American surged after its diamond unit De Beers said it generated $660m from provisional rough diamond sales in the third sales cycle of 2016.

Basic resources in general got a lift as metals prices edged up on the back of a weaker dollar, with the Stoxx 600 index for the sector up 1.8%.

In Italy, bank stocks were stronger again after the country’s financial industry approved a government-backed plan to set up a rescue fund. The Atlante fund - made up by private money - will buy up shares and bad debt in struggling banks.

Swiss fragrance maker Givaudan was on the front foot after posting a solid rise in first quarter sales.