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July 22 (Reuters) – European shares nudged lower on Tuesday, weighed down by mixed corporate earnings, while market sentiment over a potential U.S. trade deal soured following reports that the bloc was preparing counter-measures.
The pan-European STOXX 600 index was down 0.3% at 545.1 points, as of 0714 GMT.
European chemicals stocks led sector declines, falling 1.7%, as shares of Akzo Nobel dropped 4.2% after the Dulux paint maker lowered its core profit outlook for 2025.
Sartorius Stedim Biotech slipped nearly 7%, the biggest percentage decliner in the STOXX 600, after the French lab supplies manufacturer reported its half-year results.
Conversely, Compass Group gained 4.5% after the British food catering firm agreed to buy European premium food services business Vermaat Groep for about 1.5 billion euros ($1.75 billion) including debt.
In trade, EU diplomats said the 27-nation bloc was considering a broader range of counter-measures against the United States, which could allow the EU to target U.S. services or curb access to public tenders in the absence of a deal.
Meanwhile, an ECB survey signalled on Monday that euro zone firms remained optimistic about their growth prospects but were also facing pressure on profits partly due to trade tensions.
Investors geared up for a week of corporate updates from Wall Street and European leaders, including results from the region’s largest software maker SAP later in the day, to gauge the impact of trade turmoil on businesses.
(Reporting by Sanchayaita Roy in Bengaluru; Editing by Sherry Jacob-Phillips)
