European stocks declined for the third day in a row as investors digested earnings

European stocks declined for the third day in a row as investors digested earnings from some of the largest companies on the continent.

The Stoxx Europe 600 index fell by 0.5%. Regionally, Germany's DAX declined by 1.2% and France's CAC 40 was lower by 0.7%. Meanwhile, the U.K.'s FTSE 100 and Italy's MIB closed flat.

European defense stocks are firmly in negative territory this afternoon, with the Stoxx Europe Aerospace and Defense index last seen trading 2.5% lower.

Leading the losses is Swedish defense contractor Mildef, paring earlier losses to trade 6.7% lower, and German arms manufacturer Rheinmetall, last seen trading down 3.7%.

Some earnings updates are weighing on shares. French biotech firm Sartorius Stedim is down more than 10% after reporting weaker-than-expected earnings before interest and taxes (EBIT) of 128.9 million euros ($150.7 million) for the second quarter, even as year-on-year profits and revenue rose across the first half.

Swiss chocolatier Lindt and Spruengli has meanwhile lost 7% following its own miss on analyst forecasts. That’s despite the company raising its sales outlook for the year, saying it has benefitted from customer loyalty and a trend towards more premium products. The chocolate maker now sees organic sales growth of between 9% and 11%, compared to 7% to 9% previously.

Tariff uncertainty continues to hang over the investment landscape. CNBC’s Holly Ellyatt reports today on how the European Union appears to be preparing to deploy its “Anti-Coercion Instrument” — characterized as a “nuclear option” to try to deter trade disputes — in response to the White House’s 30% tariff threat.