European shares fell in early trading on Thursday, losing ground for the fourth session in a row, as this week’s slump in oil and iron ore prices weighed on a number of resource-related stocks.

Shares in Airbus fell as much as 4.5 per cent, adding to a 10 per cent drop in the previous session after the planemaker predicted flat profits in 2016. That surprised investors who had expected new and recently upgraded models to start boosting results that year.

Analysts also cited rising concerns that tumbling oil prices will reduce airlines’ incentive to buy new, more fuel efficient aircraft.

“Further downside risks to A330 production rates/pricing and worries over the impact of low oil prices on aircraft replacement demand could potentially weigh on market sentiment,’’ Citi analysts wrote in a note.

Zara owner Inditex bucked the trend, gaining 3.1 per cent after posting in-line earnings.

At 0920 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was down 0.1 per cent at 1,356.47 points. The index has lost 3.5 per cent so far this week.

Major losers

Oil services stocks featured among the biggest losers, with Seadrill down 0.9 per cent and PGS down 1 per cent.

Brent crude has plummeted more than 40 per cent since June, forcing a number of oil services companies to scrap dividends as oil majors accelerate cost-cutting efforts.

The STOXX oil and gas index has tumbled 27 per cent since June. The sell-off has wiped $280 billion off market capitalisation of the sector, nearly the size of Israel's GDP.

Shares in CGG tumbled 9.3 per cent on Thursday after a media report saying the French government has doubts about a potential tie-up with rival Technip. Technip shares gained 2.8 per cent.

ECB loan offer to banks

Investors awaited the results of the European Central Bank’s loan offer to banks, expected around 1015 GMT. The ECB is offering banks cheap, four-year loans as part of a package of measures to add around 1 trillion euros to the ECB’s balance sheet in a bid to pump money into the economy and stave off the threat of deflation.

According to a Reuters poll, banks are seen taking 130 billion euros. They borrowed £82.6 billion in a first tranche in September and can take up to £400 billion in both rounds combined.

“If the take-up is disappointing, there could be various reactions on stock indexes: a drop on the news, followed by a rebound as the disappointing news would spark hopes to see quantitative easing being launched in Europe earlier than what is currently expected,’’ said John Plassard, senior sales trader at Mirabaud Securities, in Geneva.

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