Europe open: Stocks lower as Suez issues profits warning

European shares were lower in early trade on Wednesday as the utilities sector was hit by a profits warning at France's Suez.

The benchmark pan-European STOXX 600 index was down 0.14 at 10am GMT as were most major European bourses.

Suez shares plunged 19% at one stage after the waste and water company revised down its 2017 earnings forecast due to extra costs in Spain.

It also revealed it would be closing down some contracts in Morocco and India.

In the UK the FTSE 100 was hit by a stronger pound. Most of the index's constituent companies trade in dollars and are sensitive to exchange rate movements.

The dollar weakened further suffered a renewed sell after US Treasury Secretary Steven Mnuchin said it this was good for trade.

In corporate news, accounting software developer Sage retreated after it increased sales slightly below target in the first three months of its financial year as it invested "heavily" in sales training to allow sales to accelerate in coming months.

Chile-focused miner Antofagasta was on the back foot after it said full-year copper production fell 0.7% to 704,300 tonnes, in line with guidance.

Pharma stocks received a boost as Switzerland's Novartis reported stronger than expected full year sales and profits.

Fourth quarter net sales rose 2% year-on-year to $12.9bn on a constant currency basis. Full year sales were up 2% to $49.1bn.