European stocks fall despite strong earnings report from Nestle, Ericsson

European shares saw losses for its third consecutive session on Wednesday, as weakening stocks from healthcare and construction sectors outweighed a strong earnings report from Nestle and Ericsson.

The pan-European STOXX 600 fell by 1.0%, still remaining 16% shy of its all-time high as it continued to struggle out of its trading range since June.

Third-quarter profits for companies on the STOXX 600 have been forecasted to plummet by 34.8%, according to Refinitiv data, a slight improvement from the 36.7% predicted at the start of the earnings season.

Most European sectors slumped, with healthcare stocks taking the worst hit, though banking sectors stayed afloat with rising U.S. and European government bond yields.

Meanwhile, consumer giant Nestle improved its 2020 sales outlook following a quarterly beat. However, its shares fell slightly after early gains.

Stocks from Swedish telecoms equipment maker Ericsson soared by 5.5% as higher margins and China’s 5G rollout helped the company beat quarterly core earnings estimates.