European stocks fell on Tuesday after weak results from Diageo (LON: DGE) and Bayer overshadowed a jump in shares of companies linked to the economic cycle, while investors await signs of progress regarding a new US fiscal stimulus.
Diaggio, the world’s largest wine producer, fell 5.9 percent after it announced a larger-than-expected drop in core net sales in light of declining demand for its whiskey, vodka and gin products in all markets except North America.
In contrast, energy giant BP jumped 5.8 percent after it cut dividends, in a widely expected move and announced a record loss of $ 6.7 billion in the second quarter of the year amid the demand for fuel affected by the Corona virus crisis.
Oil and gas companies led the gains, up 2.1 percent, while auto, banking, entertainment and travel makers advanced between 1.5 and 2 percent.
By 0727 GMT, the European Stoxx 600 index was 0.2 percent down, but the leading eurozone stock index was up 0.5 percent.
The German Bayer drugs and pesticides group fell 3 percent after it announced a net loss of 9.5 billion euros ($ 11.2 billion) in the second quarter, after a $ 10.9 billion settlement to US lawsuits over allegations that its weed killer product Rondab is causing cancer .