Europe midday: Ibex smashed as Catalan rebels testify in court

European stock markets slunk lower by midday on Thursday, weighed down by poor results from various corporate heavyweights and renewed euro strength after growth forecasts for the bloc were upgraded.

The benchmark Stoxx 600 was down by more than three points or 0.08% to 391.30, with the Dax 30 slipping 123.68 points or 0.92% to 13,258.74, and France's Cac-40 giving up small early gains to drop 0.76% to 5,430.03.

Analyst Mike van Dulken at Accendo Markets said the DAX was down as disappointing earnings reports from ProSieben and results-inspired falls drops for heavyweights Siemens and Adidas add to unwelcome euro strength for exporters, after fears of delays to US tax reform pushed the dollar lower.

New forecasts from the European Union for the fastest pace of expansion in a decade also helped the euro, with a report from the European Commission citing strong private consumption and the global recovery propelling the eurozone to 2.2% gross domestic product growth in 2017, up from a forecast of 1.7% in May.

The EU as a whole is seen expanding this year by 2.3%, up from the 1.9% previously forecast.

Also in focus on Thursday will be any details that emerge from the Senate’s version of the Republican tax bill, said Jim Reid at Deutsche Bank.

"It's unclear just how much detail we'll get though with some conflicting reports out there," he said, noting that Axios reported that the release of the bill will be delayed but Politico reporting that GOP leaders are ready to walk through the bill with at 11.30 EST.

"Thereafter it will be released to the public but the timing is a bit up in the air so we might have to wait and see. Overnight, a spokeswoman for the Senate Finance Committee, Ms Lawless, noted that today’s tax proposal will be a 'conceptual mark' rather than the legislative details."

Out in the periphery, Spain's Ibex 35 was trading down to its lowest level this month at 10,144.70, with thin trade on day when many in Madrid are on holiday but with investors focused on news about Catalonia, where on Thursday in the Supreme Court, the President of the parliament of Catalonia, Carme Forcadell, and five former members of the House of Representatives will testify over alleged crimes of "rebellion, sedition and embezzlement" relating to the recent declaration of independence.

Ahead of Catalan regional elections next month, Barclays told clients on Thursday: "The main downside risk for markets remains that of a clear victory of pro-independence parties that could trigger a crisis of the government in Madrid."

As regards the crisis in the Spanish region of Catalonia, the spotlight was on the decision by the region's main pro-independence parties not to run together in the upcoming regional elections on 21 December, despite recent unfavourable poll results, with traders attempting to second guess their thinking and the potential implications.

Euro-dollar was unchanged at 1.1594, the same as Brent crude oil futures for prompt month delivery which were off by 0.02% to $63.48 per barrel on the ICE.

On the economic front, the French central bank's industrial activity guage rose to 106.0 for October, versus 105.0 in September (consensus: 105.0).

Meanwhile, in Germany, the Federal Office of Statistics reported that the country's surplus on foreign trade retreated from €25.0bn in August to €21.8bn for September.

To take note of, speeches were scheduled from at least five top officials at the European Central Bank, including Yves Mersch (1315 GMT), vice-president Vitor Constancio at 1345 GMT and Sabine Lautenschlager at 1820 GMT.

Later in the session, the latest weekly US unemployment claims data were set for release at 1330 GMT, followed by a reading on wholesale inventories for September at 1500 GMT.

Siemens was hogging the corporate headlines, after the German industrial conglomerate posted lower-than-expected fourth quarter profits at its industrial business segment of €2.2bn, which was off by 10% from a year ago and below the €2.45bn forecast by analysts.

The engineering group attributed that to a sharp drop in profits at its Power and Gas unit, where profits sank 40%.

In parallel, stock of Danish wind-turbine manufacturer Vestas was plummeting after management revealed weaker than forecast third quarter earnings and sales and lowered their guidance for full-year operating margins, on an EBIT basis, to between 12% and 13%, versus a previous range of between 12% to 14%.