European stocks mostly lower on weak earnings

European stocks pulled back Tuesday as investors reacted to a slew of corporate earnings, after positive manufacturing data around the world drove stocks higher to start the week.

The pan-European Stoxx 600 was down 0.4% by early afternoon, with chemicals stocks shedding 1.2% to lead losses while autos and oil and gas stocks climbed 1.6%.

BP reported a $6.7 billion second-quarter loss before the bell on Monday and cut its dividend after downgrading the value of some of its assets on expectations of lower commodity prices. The British oil and gas giant saw its shares gain 6.7% by early afternoon.

Diageo reported a larger-than-expected 8.4% drop in organic sales for the year up to June 30, sending the world’s largest spirit maker’s stock tumbling 5.6% to third-bottom of the Stoxx 600. Swedish radiation therapy company Elekta slid 6%.