Europe: Stocks hit by risk aversion ahead of earnings

[BENGALURU] European shares lost ground on Tuesday as investors feared that soaring commodity prices would hamper a recovery in corporate profit, with fresh signs of troubles at property developer China Evergrande also denting sentiment.

The pan-European Stoxx 600 fell 0.9 per cent by 7.11 am GMT after similar falls in Asian markets. The index is now about 5 per cent away from its August peak.

Economically sensitive mining, banking and chemical all shed more than 1 per cent, leading morning declines even as a rally in oil and other commodity prices lost some steam.

Swiss fragrance and flavour maker Givaudan slipped 2.3 per cent despite reporting a sales growth of 7.7 per cent in the first 9 months of the year.

Freight forwarder DSV inched up 1.4 per cent after it raised its earnings expectations for the year, citing brisk business activity in the 3rd quarter and continued tight capacity in the market.

REUTERS