European shares drop to two-week low as dismal earnings add to risk-off mood

European shares tumbled on Thursday as a raft of dismal corporate earnings, including from packaged food giant Nestle, worsened an already risk-averse mood, driven by jitters around the Middle East war and uncertainty over interest rates.

The pan-European STOXX 600 fell 1% to hit nearly a two-week low by 0839 GMT, in a broad-based selloff, led by automakers and rate-sensitive real estate firms .