European shares hit by Bayer, Lufthansa; FTSE shines

Credit: REUTERS/STAFF

European shares slipped on Tuesday as grim forecasts from German giants Bayer and Lufthansa soured sentiment, while a battered pound helped London's blue-chip index outperform for a second day.

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July 30 (Reuters) - European shares slipped on Tuesday as grim forecasts from German giants Bayer and Lufthansa soured sentiment, while a battered pound helped London's blue-chip index outperform for a second day.

Bayer BAYGn.DE slipped 4.4% as it became the latest agricultural supplies company to be affected by flooded farms in the United States and by trade disputes, saying its full-year earnings target has become harder to reach.

Taking other airlines down with it, Germany's Lufthansa LHAG.DE dropped 3.5% after posting a decline in second-quarter earnings and saying that the European market was likely to remain challenging this year.

A GfK survey also showed German consumer morale worsening for the third month in a row heading into August as trade disputes and a global economic slowdown bit in Europe's biggest exporter.

Combined, that pushed Germany's main stocks index .GDAXI 0.2% lower by 0713 GMT, while the pan-European stocks benchmark .STOXX fell 0.2%.

London's blue chip FTSE 100 .FTSE index touched 11 month highs, helped by a 3% jump in shares in energy giant BP BP.L. GBP/.L

(Reporting by Susan Mathew in Bengaluru;)

((susan.mathew@thomsonreuters.com; +91-80-6749-1130; Reuters Messaging: susan.mathew.thomsonreuters.com@reuters.net))

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