European shares dip as tech firm earnings weigh
LONDON, July 18 (Reuters) - European shares edged lower on Thursday, weighed down by the technology sector after a spate of disappointing company reports cast a pall over the nascent earnings season.
The pan-European FTSEurofirst 300 was down 0.2 percent at 1,195.95 points at 0706 GMT, with the tech sector dropping 1.9 percent, the biggest sectoral faller.
Mobile telecom gear maker Ericsson shed 5.9 percent after missing expectations for second-quarter operating profit, making it the top faller on the FTSEurofirst 300.
Software maker SAP AG fell 3.1 percent to the bottom of Germany's DAX after it trimmed its revenue forecast, citing a slowdown in China and echoing U.S. chipmaker Intel late on Wednesday.
The weak figures took the wind out of what has been a strong reporting season so far, with 56 percent of companies having met or beaten expectations in the on the STOXX Europe 600 after 6 percent of companies reported, according to Thomson Reuters StarMine data.
"A lot of people had bought into the hope that corporate earnings will hold up in the U.S. and improve in parts of Europe," Gerry Celaya, chief strategist at Red Tower Research.
"But people are also waiting to see...how a China slowdown is going to affect corporate earnings."