European shares drop on weaker updates; WPP and Berendsen slump

European shares slipped in early trading on Friday following some poor company updates, with WPP falling after painting a cautious picture about its outlook and Berendsen plunging following disappointing results.

The pan-European STOXX 600 was down 0.4 per cent by 0822 GMT. However, the benchmark index is up more than 1 per cent so far this week and headed for a positive weekly close.

Germany's DAX was down 0.5 per cent, also pressured by data showing retail sales fell unexpectedly in January.

WPP shares were down 5.8 per cent after the world's largest advertising group said it had seen a relatively slow start to 2017 and would plan conservatively for the year ahead after hitting its 2016 target for net sales growth.

Workwear and hygiene company Berendsen slumped 16 per cent, the biggest decliner in the STOXX 600 index, after its financial results and outlook statement. The company said the first half will continue to be impacted by legacy operations in the United Kingdom.

On the positive side, Gemalto shares rose 6.8 per cent, top gainers in the STOXX 600 index, after the digital security company said its profits from operations rose 7 per cent in 2016.