2017.02.2406:16:00UTC+00European Stocks Lower, But Set for Weekly Gain

European markets inched lower in early trade, pressured by declines in BASF after a weak earnings update from the German chemical company during a session dominated by a group of company results. The pan-European STOXX 600 was 0.1 percent lower. However, the index remained near a 14-month peak it notched on Wednesday and is set for a weekly advance for the third week straight week.

Shares of BASF dropped 3.1 percent, making it the biggest decliner on the STOXX. The world's biggest chemicals group announced that it will return to earnings growth after higher petrochemical prices supported fourth-quarter profit. Nevertheless, analysts from Baader Bank said that the company produced a low quality beat and that this year's outlook was disappointing. Saipem shares was trading 5.4 percent lower and was among the top decliners in Europe after the firm said that it does not expect any recovery for the industry in 2017 despite higher crude price.

Europe's banking sector fluctuated near the flatline, as U.K. bank RBS reported its latest figures for the previous year. The lender posted a net loss of $8.7 billion for 2016, its ninth consecutive year without a profit. RBS shares were down by more than 1.9 percent.