European Stocks Fall on Earnings Season Nerves

European stocks edged lower Tuesday as investors grew cautious about what is expected to be a grim first-quarter earnings season.

The Stoxx Europe 600 inched down 0.4% in early trade after Wall Street fell late in the session. Shares in LVMH Moë t Hennessy Louis Vuitton SE were down over 3% after the company reported weaker than expected sales figures. Meanwhile, shares of aluminum maker Alcoa, which unofficially kicked off the U.S. corporate earnings season late Monday, fell in after-hours trading after it said its first-quarter earnings declined 92% and lowered its outlook for 2016. Major U.S. financial institutions begin reporting results Wednesday.

Keeping losses in check, however, firmer oil and copper prices lifted shares of mining and energy companies on Tuesday. European banks also saw a boost after the Italian government moved ahead with a privately funded investment vehicle to reduce the bad loans afflicting the country's banks and help recapitalize weaker lenders. Shares in Banca Monte dei Paschi di Siena SpA were up over 4%.

Earlier, shares in Japan saw their biggest one-day gain in nearly a month as the yen weakened against the dollar, boosting shares of exporters. The dollar was last up 0.5% against the yen at ¥ 108.3890 after falling for seven consecutive sessions. Shares in Hong Kong and Australia also edged higher, although stocks in Shanghai fell slightly as investors grew nervous ahead of a fresh batch of initial public offerings.

Write to Riva Gold at [e-mail]

(END) Dow Jones Newswires

April 12, 2016 04:25 ET (08:25 GMT)

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