European stocks declined, snapping a nine-day winning streak, amid mixed earnings reports.
Novartis AG fell 2.1 percent after reporting lower sales, dragging a measure of health-related companies to the second-worst performance of the 19 industry groups on the Stoxx Europe 600 Index. French distiller Remy Cointreau SA slipped 2.5 percent after posting sales that missed analyst estimates.
The Stoxx 600 retreated 1 percent to 402.66 at the close of trading, after earlier rising as much as 0.3 percent. Shares extended losses in late-afternoon trading, as U.S. stocks declined amid disappointing results from IBM Corp. and United Technologies. The volume of shares changing hands on the Stoxx 600 was 19 percent lower than the 30-day average.
“The earnings season is in focus for now and there’s a consolidation after the big rally post Greece -- people are taking profits,” said Konstantin Giantiroglou, head of investment advisory and research at Neue Aargauer Bank AG in Brugg, Switzerland. “Some investors are a bit more cautious today seeing the markets have gone up a lot.”
A nine-day winning streak pushed the Stoxx 600 to within 2 percent of its record as Greece and its creditors reached an agreement paving the way for a new bailout and the European Central Bank increased emergency liquidity assistance. The nation reopened its banks on Monday after a three-week shutdown. The Athens Stock Exchange remains closed.
Zalando SE lost 5.2 percent after the German online fashion retailer indicated that second-quarter earnings may have declined because of higher costs. Tele2 AB dropped 6.8 percent after profit fell short of projections.
EasyJet Plc slipped 3.2 percent after Commerzbank AG reiterated its sell recommendation on the carrier, while also downgrading shares of some European peers amid increasing capacity and falling demand.
Stora Enso Oyj tumbled 8.3 percent, the most in three years. The Finnish papermaker posted operating profit that missed analyst estimates amid production problems in board mills, investments in new facilities and lower harvesting in China.
Faurecia SA added 1.7 percent after people familiar with the matter said Europe’s biggest maker of car interiors is exploring a sale of its bumpers business.