2017.06.2705:01:00UTC+00European Stocks Lower as Schaeffler Weighs on Autos

European stocks were mostly lower on Tuesday, led by losses among telecom, industrial and consumer goods shares. The decline in autos stocks after Schaeffler slashed its profit outlook and disappointment regarding a failed buyout of Stada have offset advances among basic resources companies and Spain's Bankia.

The pan-European STOXX 600 index dropped 0.3 percent and blue chips were 0.4 percent lower.

Autos weighed down European shares, slipping 1.4 percent after Schaeffler cut its profit guidance over growing price pressures and high costs. Shares of the German auto parts supplier plunged 11 percent, on track for their largest one-day decline since its 2015 IPO.

German drugmaker Stada also sharply dropped, tumbling 6.7 percent after private equity groups Bain Capital and Cinven both failed to obtain shareholder acceptances to take over the company.

Spanish banks were higher as investors encouraged Bankia's move to buy BMN in a deal valued at nearly $924 million, which is a further step to clean Spain's banking sector. Shares of Bankia gained over four percent.

Advances among mining companies Anglo American, Rio Tinto and BHP Billiton supported the basic resources sector, which rose 1.3 percent.