October 28, 2016 / 7:47 AM / 2 years ago

European shares slip as earnings disappointments bite, Novo slides

LONDON, Oct 28 (Reuters) - European equities fell to their lowest in more than a week on Friday, with companies such as insulin maker Novo Nordisk and digital security firm Gemalto slumping more than 10 percent after their quarterly results.

Investors’ tolerance have shown little tolerance for earnings disappointments in recent weeks with shares of companies missing estimates or warning on profits getting punished severely.

Denmark’s Novo Nordisk shares slumped 14.5 percent and were on track for worst single-day loss in more than a decade after the company lowered its full-year profit growth forecast and said it saw ongoing market difficulties in the United States.

Gemalto shares were down 13.8 percent after a worse-than-expected outlook for 2017.

RBS shares rose 1.7 percent after its results, extending the recent run of banks outperforming broader markets.

The pan-European STOXX 600 index was down 0.7 percent after falling to its lowest level since Oct. 17.

Latest weekly funds flow data from Bank of America Merrill Lynch and EPFR showed European equities funds suffered outflows for a record 38th straight week, though the magnitude of outflows at $0.7 billion, were the smallest since January. (Reporting by Atul Prakash, Editing by Vikram Subhedar)

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