European Stocks Down on Slowing U.K. Growth As Aer Lingus Gains Altitude on IAG Offer

Markets were down across the continent Tuesday as slowing growth in the U.K. added to concerns about Europe’s sluggish recovery. The U.K. Office for National Statistics estimated that GDP expanded just 0.5% in the fourth quarter, compared to 0.7% growth in the third quarter, as construction and production output declines offset gains in services and agriculture. In Amsterdam, Philips slumped after giving a cautious outlook for 2015 and 2016 and said it expects up to €400 million in costs this year for carving out its lighting and automotive businesses. Bucking the negative trend, Irish carrier Aer Lingus gained altitude in Dublin and London after saying it may accept a sweetened third offer from British Airways parent IAG.