European stocks open lower on disappointing earnings

European stock markets tumbled at the open on Wednesday following mixed corporate earnings reports.

London’s FTSE 100 dropped 0.4 percent to 8,136.64 points while the Paris CAC 40 sank 1.2 percent to 7,511.57 and the Frankfurt DAX shed 0.8 percent to 18,416.71, AFP reports.

After Wall Street indices closed in the red on Tuesday, Tesla reported that its profits fell 45 percent in the second quarter owing to price cuts and aggressive AI investment.

By contrast, Google-parent Alphabet posted profit and revenue that beat expectations as its AI-amped cloud and search ads businesses thrived.
In Europe, shares in French luxury giant LVMH, home to Louis Vuitton, sank five percent on Wednesday after it logged a 14-percent drop in net profit in the first half of the year.