European shares fall as investors digest earnings deluge; Adidas sinks
German sportswear brand Adidas (ADSGn.DE), opens new tab warned that higher U.S. tariffs would add around 200 million euros ($231 million) to its costs in the second half, sending shares tumbling 7% to a near four-month low. Peer JD Sports (JD.L), opens new tab fell 0.8%.
Banks index (.SX7P), opens new tab dipped 0.9% a day after hitting its highest since September 2008. Swiss bank UBS (UBSG.S), opens new tab rose 3% after reporting its second-quarter profit more than doubled from last year's, while HSBC Holdings (HSBA.L), opens new tab fell 5% on posting first-half pretax profit below estimates.
The pan-European STOXX 600 index (.STOXX), opens new tab dropped 0.3% by 0720 GMT. Regional bourses were mixed, with Germany's blue-chip DAX (.GDAXI), opens new tab shedding 0.3%, while France's CAC 40 (.FCHI), opens new tab rising 0.1%.
Miner Rio Tinto (RIO.L), opens new tab dropped 1.4% after reporting its smallest first-half underlying profit in five years on subdued iron ore prices.
The outlook for European corporate health has improved, earnings forecasts showed on Tuesday, after the European Union struck a framework trade deal with the U.S. on Sunday following weeks of negotiations.
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