London - European shares fell on Thursday, with Air France lower after a profit warning, and other stocks such as Diageo down after earnings missed forecasts.
At 1011 GMT, the FTSEurofirst 300 index of top European shares was down 0.8% at 1 162.61 points, after falling 0.4% in the previous session.
Air France-KLM fell 7.5% after saying on Wednesday it would miss a key profit target after a triple whammy of snow, strikes and security problems hit its finances.
Credit Suisse fell 3.6% after the heavyweight bank missed profit expectations in the fourth quarter because of debt charges and cut its return on equity target due to tighter capital regulations.
Danish lender Danske Bank fell 9.8% after saying it would raise 20 billion crowns ($3.7bn) in new capital and posted fourth-quarter profits below market consensus.
Among other banks to fall were Spain's Banco Santander and BBVA, down 3.7 and 3% respectively.
"You're a brave man if you genuinely believe the banking sector has turned the corner. There are still issues like the sovereign debt crisis," said Jeremy Batstone-Carr, strategist at Charles Stanley.
Diageo fell 4.9%, after half-year results from the world's biggest spirits group missed forecasts.
Across Europe, Britain's FTSE 100, Germany's DAX and France's CAC40 fell between 0.5% and 0.9%.
Deutsche Boerse gains
On the upside, Deutsche Boerse rose 2.4% following Wednesday's news it was in advanced talks to buy peer NYSE Euronext.
Telecom equipment maker Alcatel-Lucent soared 11.3% after striking an upbeat tone for 2011, keeping an ambitious free cash flow target and reassuring investors on its profitability as it nears the end of its turnaround plan.
At 1200 GMT, the Bank of England will announce its decision on interest rates. With Britain's economy contracting at the end of 2010, economists have stuck with the view that the BoE will keep interest rates on hold until much later in the year.
A Reuters poll last week showed only 21 out of 67 analysts thought rates would go up before the fourth quarter.
"What may be worrying the markets is that rates will have to go up in Europe, as they have been doing in the developing world," said Mike Lenhoff, strategist at Brewin Dolphin Securities, in London. "There won't be a rise today, but it will be interesting to see if there are more hawks."
Minutes of the BOE Monetary Policy Committee's meeting, to be released later this month, will show how many of the nine members voted for an increase in rates. Last month, two voted for a rise.
Later, investors' attention will turn to US economic data, such as weekly jobless claims. The European shares benchmark is still up nearly 80% from a record low in March 2009, with several major economies having emerged from recession, helped by stimulus from governments and central banks worldwide.
"Most earnings themselves have been supportive, but if you look at the guidance and the impact of inflationary pressure, what is almost certain is that this will have an impact on profit margins," said Batstone-Carr.