LONDON (The Deal) -- European stocks fell on Tuesday as the downing of a Russian jet by Turkish military triggered new global geopolitical jitters, and disappointing corporate news added to the gloom.
The BIST 100 index in Istanbul was down 1.37% and the Turkish lira fell against the dollar following the jet downing, which Turkey said followed repeated warnings that the jet was violating its own air space. Russia denies doing this, saying the plane was flying above Syria.
In London, the FTSE 100 was down 1.06% at 6,238.58. In Frankfurt, the DAX dropped 1.19% to 10,960.12 even after all three business sentiment indices compiled by influential research institute Ifo, including its flagship business confidence gauge, came in ahead of expectations in November and ahead of the October readings. In Paris, the CAC 40 was down 1.68% at 4,806.77.
Airlines and leisure shares, including EasyJet (ESYJY) and International Consolidated Airlines Group (ICAGY) , Thomas Cook (TCKGF) and Tui (TUIFF) in London, and Air France-KLM (AFRAF) in Paris tumbled. EasyJet said it would be suspending flights to and from Sharm el Sheikh in Egypt until January.
Retailer Kingfisher (KGFHY) , which operates home improvement stores, fell sharply immediately after announcing third-quarter sales lagged forecast but pared losses in the course of the morning.
News distributor and aviation services company John Menzies was down close to 4% after it warned that extra investment will erode full-year profit in an update on the first 10 months of the year.
Other companies to react negatively to trading updates include bank note printer and passport maker De La Rue, appliances retailer AO World, mortgage lender Paragon Group of Companies, and retailer Pets at Home.
Outsourced services company Babcock International Group was up well over 4% after predicting it will reap benefits from a U.K. government review of its defense spending as it released first-half-results.
Pubs operator Mitchells & Butler rose after it said it would pay dividends for the first time in seven years.
Falkland Oil & Gas was up more than 4% at 10 pence after the explorer agreed to a scheme of arrangement takeover by Rockhopper. The stock-and-cash offer values the target at 10.70 pence, the companies said, or £57.1 million in total.
In Madrid, utility Endesa (ELEZY) was down close to 3% after analysts at UBS downgraded the stock to neutral from buy.
In Tokyo, the Nikkei closed up 0.23% at 19,924.89 and the Topix rose 0.17% to 1,605.94.
Sharp closed up 13.6%, rising for the third consecutive day on reports that banks are poised to forgive loans.
In Hong Kong, the Hang Seng closed down 0.35% at 22,587.63. The Shanghai Composite rose 0.16% to 3,616.11.