Investing.com – European equities traded mostly lower on Tuesday as investors focused on a wave of earnings and kept an eye on worse-than-expected data.

Nearing midday trade in Europe, the benchmark Euro Stoxx 50 lost 0.43%, France’s CAC 40 dropped 0.22% while Germany’s DAX 30 traded down 0.52%.

Earnings season is in full swing with market players keeping an eye on major European firms’ results for the second quarter.

Ericsson (BS:ERICAs) tanked around 11%, leading decliners on the pan-European Stoxx 600, as the Swedish firm reported worse-than-expected operating losses.

Zalando SE (DE:ZALG) followed as the second worst performing stock on the benchmark with losses of 7% after the German online retailer forecast a 20% increase in sales that missed consensus expectations for a rise of 22%.

Leading the advancers on the index, IG Group Holdings (LON:IGG) gained nearly 9% after the British spread-betting company reported an increase in profit thanks to a higher number of clients.

Also near the top of the benchmark, Royal Mail (LON:RMG) rose nearly 3% as revenue increased 1%, while Novartis AG (SIX:NOVN) registered gains of more than 2% after the Swiss pharmaceutical confirmed its full-year guidance and said it had potential for “several highly innovative products”.

European investors also looked across the Atlantic to earnings from big names such as Goldman Sachs (NYSE:GS), Johnson & Johnson (NYSE:JNJ), UnitedHealth (NYSE:UNH), Bank of America (NYSE:BAC) or Lockheed Martin (NYSE:LMT) who report before the U.S. open, while IBM (NYSE:IBM) will release figures after the U.S. market close.

On the European data front, morale among German investors deteriorate more than expected in July, according to the ZEW research institute, with its economic sentiment index falling to 17.5 from the prior 18.6, missing expectations for a reading of 18.0.

Over in the UK, British annual inflation unexpectedly eased to 2.6%, from the prior 2.9%, marking its first decline since October 2016 and its largest drop since February 2015.

The data erased gains in the pound, sending cable to intraday lows.

Meanwhile, oil prices edged higher on Tuesday, bouncing back after yesterday’s decline of more than 1% as market players continued to weigh strong demand against the global supply glut.

European energy stocks traded mostly lower, as French oil and gas major Total SA (PA:TOTF) slipped 0.01%, Italy’s ENI (MI:ENI) was unchanged and Norwegian rival Statoil (OL:STL) fell 0.29%.

Financial stocks were under pressure, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) fell 0.82% and 0.84%, respectively, while Germany’s Deutsche Bank (DE:DBKGn) traded down 0.76%. Commerzbank (DE:CBKG), however, traded up 0.63%.