European Stocks Fall on Weak Autos

European stocks fell on Thursday, giving up most of the previous day's gains as cuts in annual forecasts from Daimler and Renault hit autos and weakening commodities dragged oils and miners lower.

Credit Suisse surged 5.3 percent after posting forecast-beating earnings, but the results failed to spark a rally in the banking sector, which lost 0.8 percent.

The FTSEurofirst 300 index of top European shares unofficially closed 1.6 percent lower at 1,169.74 points. The index rose 2.1 percent on Wednesday.

"I think that it's more than profit-taking today. The recovery of the last few days was a kind of market illusion," said Victor Peiro Perez, head of strategy at Caja Madrid Bolsa.

"With high short-selling pressure and a fall in oil prices, it was normal to see a rebound, but earnings are sending mixed signals and we think that it will be difficult for the European markets to really recover in the short term."

Shares of automakers got hammered after both Daimler and Renault cut their forecasts, quashing hopes for the troubled sector which had emerged on Wednesday when PSA Peugeot, Volkswagen and Fiat stuck to their targets.

Daimler sank 10 percent, Fiat lost 4.9 percent and Peugeot fell 7.2 percent.