LONDON ( The Deal) -- European stocks continued to lose steam on Tuesday, as disappointing corporate news and an unexpected U.K. manufacturing slump caused some jitters.
In London, the FTSE 100 was down 0.51% at 6,788.64, while in Frankfurt the DAX lost 0.56% to 9.850.70. In Paris, the CAC 40 shed 0.40% to 4,388.08.
Airline shares across Europe posted declines after Air France-KLM Group cut its full-year profit forecast.
Europe's largest airline is now targeting earnings of 2.2 billion to 2.3 billion euros for the year, down from a previous forecast of at least 2.5 billion euros, citing overcapacity on North American and Asian long-haul routes. On top of this, the carrier said that a "persistently" weak cargo demand and the difficult situation in Venezuela weighed on its first-quarter performance.
In London, International Consolidated Airlines Group fell 5.07%and low-cost easyJet declined 3.32%, while in Frankfurt Deutsche Lufthansa AG fell 2.37% to 15.25 euros.
Among other decliners, retailer Marks & Spencer fell 1.64% at 426.10 pence, as a 12th straight quarterly drop in non-food sales offset a slight improvement in clothing sales. The retailer said its full-year guidance remains unchanged amid "challenging" market conditions. It's due to report second-quarter and half-year results in early November.
In the U.K., an unexpected monthly drop in output, also weighed on investor sentiment. Output fell 1.3% from April to May, the biggest monthly drop in six months, and the sharpest decline since January 2013. The main contributors to the decrease in manufacturing were basic metals and metal products, basic pharmaceuticals and preparations, and computer, electronic and optical equipment.