European stocks fell as factory activity declined in Asia

European stocks fell at the open on Tuesday as weak factory activity data in Asia and some disappointing corporate earnings halted a rally that pushed several regional indices to multi-year highs.

The pan-European Stoxx 600 index was down 0.1 percent by 0714 GMT, with the mining and real estate sectors among the main losers.

Surveys of private firms showed Asian factory activity contracted in July, a sign of the impact of slowing global growth and a weak Chinese economy on the region’s fragile recovery. Later in the day, surveys of factory activity in the eurozone are due.

DHL shares fell 3 percent after the company reported a quarterly profit slump as rising inflation, the war in Ukraine and the ongoing energy crisis hit consumer demand and freight rates.

In Britain, HSBC rose 2.1 percent after the bank raised core performance targets, while BP rose 2.2 percent after the energy giant raised its dividend by 10 percent.