UPDATE 1-European stocks weather global sell-off while AB InBev, WPP sink

The eurozone STOXX fell as much as 0.8 per cent before climbing back up to trade 0.4 per cent higher.

Eurozone shares proved relatively resilient to a global sell-off on Thursday, managing modest gains despite heavy losses in U.S. and Asian markets, though weak results from AB InBev and WPP underlined investor concern about slowing earnings growth.

The eurozone STOXX fell as much as 0.8 per cent before climbing back up to trade 0.4 per cent higher by 0840 GMT. Germany's DAX hit its lowest level since Dec. 8, 2016, in early deals before reversing losses, up 0.1 per cent.

The peripheral euro-zone indices of Spain and Italy led the market, up 0.8 percent each.

Pierre Bose, head of European strategy at Credit Suisse Wealth Management, said the more overdue correction was in U.S. stocks while Europe has been oversold.

"It's encouraging that European stocks are beginning to find their feet a little bit given the downdraft we've had in U.S. stocks. If we can find some support for non-U.S. stocks certainly that will help overall sentiment," he said.

Earnings dominated the day with some heavy losses.

WPP shares sank as much as 22 percent at the open after the advertising group cut its outlook, reporting a sharp downturn in trading. The stock hit its lowest level since December 2012 and was down 16 percent by 0840 GMT.

WPP dragged the media sector down 2.9 percent, set for its worst day since the Brexit vote sell-off in June 2016.

AB InBev shares tumbled 7 percent after the Belgian brewing giant halved its dividend due to volatility in emerging markets.

"In every region, both volumes and sales missed expectations. The bright spots were China, Mexico, Western Europe and many African markets while Brazil, Argentina and South Africa faced difficulty," wrote Liberum analysts.

Clark Fenton, chief investment officer at Agilis Investment Management, said current selling was similar to the February slide in that it was sparked by rising rates.

"What seems to be potentially different this time is that, as this is happening right in the middle of earnings season, people are very focused on guidance, cost pressure, potential margin deterioration and are really sniffing out any hints this could be peak profits," Fenton said.

Stocks that missed expectations were punished harshly.

Sweden's Epiroc fell 9.4 per cent after the Swedish mining machinery maker reported third-quarter orders well below market expectations.

Strong bank results, meanwhile, helped boost sentiment.

UBS shares rose 1.6 percent after Switzerland's biggest bank reported a surprise 32 percent rise in third-quarter net profit and said it aimed to grow wealth management profits at the upper end of its target over 2019-2021.

UBS helped the banks sector rise 0.8 percent.

"There was already a significant amount of bad news priced into the top tier banks... It's the deepest value sector out there," said Credit Suisse's Bose.

Other sectors which have been hammered this year and were trading at very low valuations, were among the best-performing as a rotation into "value" gathered pace.

Autos rose 1.7 percent with Peugeot topping the CAC 40, up 5.2 percent.

Even Europe's tech sector managed a 0.8 percent gain despite the Nasdaq suffering its worst day since Aug 2011 on Wednesday.

Top of the STOXX was Kion, jumping 12.6 percent after the German logistics company reported strong order intake.

Finnish heavy machinery firm Konecranes also rose 9.9 percent after reporting stronger-than-expected earnings.

Dometic was among the biggest fallers, down 13 percent after the manufacturer of motorhome electrical parts reported profits in line with expectations.

Overall the global stocks sell-off has taken nearly $7 trillion off the MSCI World market cap since the Jan peak.