Europe under pressure as earnings disappoint; ECB eyed

European equities experienced a choppy session on Thursday, as a disappointing set of earnings put investors on edge, ahead of a closely watched monetary policy decision from the European Central Bank (ECB).

The pan-European STOXX 600 fell 0.7 percent in late morning trade, despite opening higher. Sectors were mostly lower.

London FTSE 100 slipped 0.8 percent, while France's CAC 40 was off 0.7 percent. Germany's DAX reversed gains, falling 0.6 percent.

The ECB is due to meet on Thursday with the central bank widely expected to hold interest rates steady following its decision last month to cut its main interest rates, expand its bond-buying program to 80 billion euros ($90.3 billion) a month and add corporate bonds into the mix.

"Today's meeting is likely to be particularly important, not because of any further policy decision, which is not expected to change, but in light of recent fierce criticism of the ECB, from within German political circles, where fears are rising that the ECB is trying to do too much particularly given that German inflation remains well above 0%," Michael Hewson, chief market analyst at CMC Markets, said in a note.

Banks outperformed other sectors ahead of the decision, up some 1.5 percent. The rate decision is due at 12:45 p.m. London time and a press conference follows at 1:30p.m. London time.

Overseas, Asia finished Thursday mostly higher, with Japan's Nikkei 225 jumping 2.7 percent on the back of a weaker yen.

Crude prices were treading water on Thursday as concerns over a global glut took center stage after Russia and Iran said they were ready to raise oil production further, according to Reuters. Brent and U.S. crude saw a slight tick-up, trading around $46 and $44.40 respectively.

Metal prices however posted solid gains yet individual stocks saw declines. Anglo American fell over 2.5 percent, after the miner reported that its diamond production and iron ore production in Kumba had decreased in the quarter.
VW revs up, while Ericsson shares plummet

One of Europe's top movers was Volkswagen, up over 5 percent, following reports that the automaker had reached a deal with U.S. officials to buy back nearly half a million U.S. diesel cars, that were fitted with the emissions cheating device. VW-owned Porsche was up 3 percent on the news.

Luxury brand Hugo Boss was off more than 3.5 percent, after RBC cut its price target on the stock.