European Stocks Pressured by Weak Energy Sector

European stocks headed lower Thursday, led by weakness in the energy sector, as investors focused on a mixed bag of corporate earnings.

The Stoxx Europe 600 was down 0.3% in early trade, following a 1.3% gain on Wednesday.

Oil and gas companies on the Stoxx Europe 600 fell 1.3%, led by drops in BP PLC shares of 3.0% and Tullow Oil PLC of 2.2%, following recent declines in oil prices.

The biggest loser was Danish biotechnology Novozymes A/S, which was down 9.2% after cutting its sales growth forecast.

Weak results also weighed on Deutsche Post AG and Zurich Insurance Group, which were down 3.9% and 3.5%, respectively.

German retailer Metro AG climbed after posting a net profit for the second quarter.

Germany's DAX index was down 0.1%, France's CAC 40 index was down 0.2% and the U.K. FTSE 100 index was 0.4% lower.

In the U.K., investors were looking ahead to the release of Bank of England's inflation report, an interest rate decision, minutes of the policy meeting and comments from Governor Mark Carney.

Barclays strategist Dennis Tan said he expected at least one member of the BOE's rate-setting committee to vote for an interest-rate increase.

Mr. Tan said the British pound should continue to rise in value against other European currencies. The euro was down 0.2% against the pound at £ 0.6977, and is down more than 10% against sterling this year.

More broadly, investors are waiting for Friday's U.S. jobs report for July for more guidance on the timing of the first increase in interest rates in nearly a decade. The Federal Reserve considers employment and inflation data as it makes decisions on monetary policy.

Asian stocks fell overnight led by bourses in China as investors continue to assess the level of regulators' commitment to support mainland stocks. The Shanghai Composite Index was down 0.9%

In Australia, the S&P ASX 200 was down 1.1% after the country's biggest banks announced plans to raise billions of dollars to meet regulatory demands for higher capital holdings.

Brent crude was slightly lower at $49.55 per barrel. Gold was flat at $1,085.7 per troy ounce.

Write to Christopher Whittall at [e-mail]

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