Weak chemical and construction earnings keep Europe lower

On Friday European stocks slipped again, following their weakest day in six weeks, as downgrades to growth forecasts weighed and bleak numbers from Umicore, Skanska, and Rockwool outweighed a sales beat at L’Oreal.

The pan-European STOXX 600 was down 0.1 percent as of 1010 GMT, with most of the action at the level of individual stocks. The index was on track for its worst week in six.

Markets were hit on Thursday by U.S. President Donald Trump saying he did not plan to meet Chinese President Xi Jinping before a March 1 deadline to achieve a trade deal. Growth worries in Europe also spiked after the European Commission downgraded its growth forecasts.

French cosmetics giant L’Oreal said strong demand for luxury skin creams helped it beat fourth-quarter sales forecasts - another company reporting better-than-feared demand from China after LVMH last week. Its shares rose 1.2 percent in early deals before giving back gains to trade up just 0.4 percent. Traders put the move down to profit-taking after a strong run - L’Oreal hit a record high on the 5 February.

On the flip side, Belgian chemicals and cobalt refiner Umicore fell 4.8 percent after saying it expected 2019 growth to be hit by subdued demand in cars and consumer electronics, and R&D costs. Analysts said the company’s lack of quantitative guidance for 2019 weighed on sentiment.

Construction was a weak spot with Denmark’s Rockwool sinking 12 percent after fullyear earnings missed expectations, and Sweden’s Skanska losing 7.8 percent after it cut its dividend and lagged profit estimates.

Asian stocks lost ground on Friday as investors worried about a broadening global economic slowdown, with sentiment not helped by the absence of any positive signs for a resolution in the U.S.-China trade row.

In commodities, U.S. crude futures slipped 0.7 percent to $52.27 per barrel, extending losses after dropping 2.5 percent in the previous session. Brent crude was down 0.6 percent at $61.26 per barrel.