European shares were mixed on Tuesday after company earnings reports, and the dollar's rebound stalled as investors waited for talks about government aid in the United States to make progress. Strong U.S. manufacturing data boosted sentiment through the Asian session, even as Sino-U.S. relations took a turn for the worst. After a rally on Monday, European shares opened higher but quickly slipped into the red, with the pan-European STOXX 600 down 0.3% and London's FTSE 100 flat on the day by 1034 GMT.
European shares fell after opening higher, following a mixed bag of earnings results, while the dollar's rebound stalled as investors waited for progress in talks on government aid in the United States. After a rally on Monday, European shares opened higher but then fell, with the pan-European STOXX 600 down 0.6% and London's FTSE 100 down 0.7%. MSCI's main European Index was flat on the day.
The Johnnie Walker whisky maker took the 1.3 billion pound non-cash writedown related to its businesses in India, Nigeria, Ethiopia and the Windsor whisky brand in South Korea, blaming challenging trading conditions due to the COVID-19 pandemic. On Tuesday, the company reported an 8.4% drop in organic sales for the year ended June 30, larger than the 7.3% fall analysts had expected, company supplied estimates showed. Diageo shares were down 6.2% in early trading and was the biggest loser on the FTSE.