By Helen Reid
LONDON (Reuters) - European shares slipped on Tuesday after weak data from China and Germany added to a spate of less encouraging news on the global economy, but the banking sector offered a ray of light after strong results from Austria's Raiffeisen Bank.
The pan-European index eased 0.1 percent while Germany's DAX declined 0.2 percent after Europe's biggest economy reported first-quarter growth slightly slower than expected.
The earnings season was nearing its close with more than three-quarters of MSCI Europe companies having reported first-quarter results.
"European banks have tended to perform quite well and have picked up a lot recently with some good earnings," he added.
Indeed, on Tuesday bank stocks led the way.
An 81 percent increase in first-quarter net profit sent Raiffeisen shares up, while Commerzbank led the DAX after reporting quarterly pre-tax profit ahead of analysts' expectations.
Italy's FTSE MIB, which is heavily weighted to the financial sector, rose 0.4 percent, outperforming European peers.
Italy's government-forming efforts hid a speedbump late on Monday as 5-Star and League parties won more time to decide on a prime minister.
Shares in the French payments company jumped 4.8 percent, while Atos, which has a majority stake in Worldline, rose 2 percent.
Overall, price reaction to earnings numbers has been muted, Morgan Stanley analysts said, with earnings misses tending to have a more marked impact.
"You tend to need good guidance as well as beats to warrant good stock performance, which is to be expected nine years into a bull market," said Psigma's McPherson.
There was no shortage of fallers after results on Tuesday.
French satellite firm Eutelsat also tumbled 8.7 percent after warning it could fall short of its full-year revenue target, and Danish jewelry maker Pandora fell 9.2 percent on lower than expected profit due to a slowdown in China.
(Reporting by Helen Reid; Editing by Julien Ponthus/Keith Weir)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)