European stocks drop amid poor earnings, banks slump

The sentiment around the European stock markets turned soured this Tuesday, as investors digest poor show of corporate earnings results. While wavering oil prices and another day of weak performance for the banking sector stocks also weighed on the European equities.

On the corporate news front, German retailer Metro fell 5.4% after the company reported an unexpected loss in its fiscal Q3, while Credit Suisse and Deutsche Bank fell 4.7% and 2.9% respectively after STOXX announced they will be delisted from the STOXX Europe 50 index from Aug 8.

Markets ignored UK construction PMI as well as Eurozone PPI data released earlier on the day, as main focus remained on the earnings reports.

Currently, Germany's DAX 30 index drops -1.35% to 10,190, while the UK's FTSE index declines -0.65% to 6,649. Among other European indices, the French CAC 40 index slides -1.67% to 4,336, while the pan-European Euro Stoxx 50 index drops -1.60% to 2,920 points.