EUROPE MARKETS: Europe Stocks Decline; Tesco Drops After Earnings

By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- European stock markets were on track for a fourth straight day of losses on Wednesday, with heavyweight Tesco PLC posting steep losses after a lackluster earnings report.

The Stoxx Europe 600 index fell 0.8% to 285.90, after closing at a one-week low on Tuesday.

The index spent the past three sessions mired in the red, as worries over a slowdown in global growth resurfaced after disappointing data from China and the U.S.

"The rot may have been stemmed in the short term by positive QE comments from some senior Fed officials but there is a real sense that investors are starting to grow weary as underlying economic data continues to disappoint," said Mike McCudden, head of derivatives at Interactive Investor, in a note,

"Without much by way of fresh data to direct investors today markets may drift as they look with caution towards another Spanish bond auction tomorrow and weekly jobs data from the U.S.," he added.

The earnings calender in Europe featured some U.K. heavyweights, with supermarket retailer Tesco (TESO) reporting its first drop in earnings in 19 years, as write-downs wiped out much of the profit. Shares were down 2.5%.

Heavyweight mining firm BHP Billiton PLC (BHP) dropped 2.3%, after saying iron-ore production was 5% lower in third quarter compared to the prior quarter.

On a more upbeat earnings note, shares of Burberry Group PLC (BURBY) jumped 2.8%. The luxury retailer reported a rise in second-half comparable sales, helped by strong sales in outerwear and men's clothing.

The FTSE 100 index dropped 0.5% to 6,272.52.

Germany's DAX 30 index lost 1.1% to 7,599.34, while France's CAC 40 index gave up 0.8% to 3,655.77.

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