European shares flat as investors take stock of mixed earnings updates

Europe’s benchmark share index was subdued on Tuesday as shares of BP fell after the energy giant suspended share buybacks, while gains in luxury stocks following a better-than-expected earnings update from Kering limited declines.

The pan-European STOXX 600 index was flat at 621.28 points at 0815 GMT and was just a whisker away from an intra-day all-time high.

BP dropped 4% after the UK company posted quarterly profit in line with analyst expectations and suspended its share buyback programme as it wrote down around $4 billion in its renewables and biogas businesses. The broader energy sector slipped 1.1%.

On the flip side, luxury stocks gained 1.2%, led by a 13.5% jump in France’s Kering as investors were relieved that it reported a slightly smaller-than-expected drop in fourth-quarter sales, as new CEO Luca de Meo battles to stabilise the Gucci owner.

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Investors were also exercising caution ahead of a slew of economic data out of the U.S. this week, including pivotal inflation and jobs reports.

Among others, TUI, Europe’s largest travel operator by market share, reported an operating profit above expectations for its first quarter, although concerns about weaker forward bookings sent shares down 2.8%.

Sweden’s Thule gained 12.7% after the recreational equipment maker beat quarterly revenue expectations, helped by acquisitions.