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European equities retreated in early trading on Thursday following some disappointing company updates, with Rolls-Royce slumping about 20 percent after issuing another profit warning.
The pan-European FTSEurofirst 300 index was down 0.7 percent at 1,484.74 points by 0811 GMT after closing 0.7 percent higher in the previous session.
Shares in Rolls-Royce were down 19.2 percent by 0808 GMT, the top decliner in the pan-European FTSEurofirst 300 index, after the British engine-maker downgraded its profit forecast for 2016, its fourth warning in just over a year, blaming sharply weaker demand for spares and services to existing aero-engines.
RWE also fell more than 4 percent after warning it would only barely reach its full-year net profit target. Persistent problems at its British business have piled pressure on Chief Executive Peter Terium to come up with a convincing turnaround plan.
According to Thomson Reuters StarMine data, 84 percent of companies in the STOXX Europe 600 index have announced third-quarter results so far, of which 51 percent have met or beaten analysts' forecasts. On the revenue front, only 47 percent companies have met or surpassed expectations.
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