European stock markets are expected to weaken further this week amidst worries that earnings from companies such as mobile phone giant Nokia may miss expectations.
Technology stocks will be in focus, with results due from Dutch consumer electronics giant Philips on Tuesday, and from Swedish-Japanese mobile phone joint venture Sony Ericsson on Thursday.
"People are gradually coming to terms that earnings will not be as strong as expected, especially in tech names, which have mainly contributed to earnings momentum," said Edwin Slaghekke, an Amsterdam-based fund manager at Theodoor Gilissen Bankiers.
Retailers will also take the spotlight as Britain's largest clothing retailer Marks & Spencer presents a strategy update for the ailing group on Monday after rejecting a take-over offer from tycoon Philip Green.
On the same day, Swiss International Air Lines reports traffic numbers for its first half, less than a month after a profit warning raised concerns about the survival prospects for Switzerland's loss-making national flag carrier.
Britain's EMI, the world's third-largest music company, is likely to offer a glimpse into industry growth at a shareholders' meeting on Tuesday, while Swedish fashion retailer Hennes & Mauritz announces June sales figures on Thursday.
MORE LOSSES SEEN: European equities have weakened so far in July due to concerns about a slowdown in corporate profit growth following a slew of warnings from US companies, mainly tech companies, and a climb in oil prices.
Strategists expect further losses.
"We are increasingly inclined to think that the market may have to fall in price before buyers will return," said Credit Suisse First Boston strategist Bill McQuaker.
However, overall market valuations do not look aggressive, and so any sell-off is likely ultimately to be limited in size, McQuaker said in a note. "A short, sharp correction of between 5 and 10 percent is the order of magnitude we have in mind."
The FTSE Eurotop 300 index of pan-European blue chips has lost nearly three percent after falling for seven of the past eight sessions.
"I don't think we are going to see any fireworks in the markets, but some sectors such as banks in UK and telecoms are getting quite oversold and could stabilise," said Mike Lenhoff, head of strategy at Brewin Dolphin Securites.
By 1200 GMT on Friday, the Eurotop was down flat at 983.17 points. It has edged up only 2.6 percent this year, hit by security concerns and fears of rising global interest rates and their impact on corporate earnings.
TECHS GALORE: Dutch consumer electronics giant Philips updates the market on Tuesday, followed by chip equipment maker ASML a day later.
Telecoms equipment makers will be in focus as Nokia, the world's biggest mobile phone maker, reports results on Thursday.
"While we expect that results will be in line with guidance, we think that guidance will continue to be depressing," said Nomura analyst Richard Windsor, who has a "reduce" rating on the stock.
"We think that a recovery in market share and margins will take at least six months as a slew of new products need to be launched and volumes need to be ramped up. At the earliest, we expect positive developments at the Q3 results in October."
Investors will also take a cue from the quarterly scorecard of Intel Corp when the world's largest chip maker reports results on Tuesday.
On Monday, J. Sainsbury, Britain's third-biggest supermarket chain, faces a contentious vote over its remuneration policy and specifically over a share bonus awarded to ousted Chairman Peter Davis.
Belgian brewer Interbrew reports quarterly volume sales on Tuesday. Companies from other sectors lining up to report figures on the same day include Sweden's roller bearings maker SKF and Norwegian video conferencing systems maker Tandberg.
Marks & Spencer, which analysts say needs to deliver a restructuring package that is worth in excess of 400 pence per share to fend off Green's bid, holds a shareholders' meeting on Wednesday.
Swedish white-goods titan Electrolux reports results on Friday.
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