European stocks dropped as investor confidence in the region’s economic prospects remained uncertain heading into the earnings season.
LVMH led consumer companies to the worst performance of the 19 industry groups on the Stoxx Europe 600 Index, falling 3.3 percent after posting worse-than-forecast quarterly sales. Burberry Group PLC lost 1.9 percent.
The Stoxx 600 fell 0.2 percent to 332.26 at 8:20 a.m. in London. The index closed up 0.3 percent yesterday, after swinging between losses of as much as 0.8 percent and a gain of 0.9 percent.
The rally that pushed the Stoxx 600 to a two-month high in March has been fading amid renewed concerns about the strength of the global economy, and the equity gauge is trading near its lowest valuation relative to U.S. equities in more than a year.
Investors are turning their attention to earnings after Alcoa Inc. unofficially kicked off the U.S. reporting season. The aluminum producer fell in extended trade after lowering its forecast for global demand. Tesco Plc, Sodexo SA and Casino Guichard Perrachon SA are among European companies scheduled to post earnings this week.
Among other stocks moving on corporate news, Ericsson and Nokia Oyj declined at least 1.2 percent after U.S. peer Juniper Networks Inc.’s first-quarter profit and revenue missed forecasts.
Tryg A/S climbed 1.3 percent after reporting first-quarter profit that beat estimates. Rocket Internet SE rose 2.7 percent after selling its stake in Lazada Group SA to Alibaba Group Holding Ltd.