Weak Earnings and Market Volatility Impact European Shares

European shares ended in the red amid choppy trading, impacted by disappointing earnings from major firms like Deutsche Bank and L'Oreal. The STOXX 600 index fell 0.3%, with basic resources hardest hit. Earnings reports influenced market sentiment, highlighted by Deutsche Bank's provisions for bad loans overshadowing its third-quarter profit.

In a volatile session, European shares closed lower on Wednesday, with mining stocks leading the decline. Sentiment turned negative partly due to weak earnings from market heavyweights like Deutsche Bank and L'Oreal, intensifying market concerns.

The STOXX 600 index dipped by 0.3%, with exchanges in Germany, France, and Italy posting losses as well. The mining sector suffered the most, sinking 1.4%, after Sweden's Boliden experienced a 2.3% drop following UBS's decision to downgrade its rating.

Financial results took center stage with Deutsche Bank shares decreasing by 2%. Despite the lender's return to profit in Q3, its increased forecast for bad loans due to Germany's weak economy created jitters. Earnings misses also hit L'Oreal, sending its stock down by 2.5% in the CAC 40.

(With inputs from agencies.)