European stocks trade mixed, sentiment hit by aviation stocks

The European indices snapped early gains and turned negative on Thursday, as sentiment soured after the aviation sector stocks witnessed sharp sell-off led by EasyJet shares. The shares of the company slumped 5% after it warned that profits are likely to drop on account of exchange rate fluctuations. Shares of the German air carrier Lufthansa also fell 4%.

However, losses remain capped amid banking sector rally after Citi recommended that investors go "overweight" on the sector. Moreover, fresh signs of buying seen in oil prices also offer support to the energy and resource stocks.

Focus now remains on the ECB monetary policy account for fresh impetus on the region’s indices, amid a lack of significant macro data due for release in the EUR calendar.

Meanwhile, Germany's DAX 30 index drops -0.30% to 10,553, while the UK's FTSE 100 index skids -0.36% to 7,009. Among the other indices, the French CAC 40 index declines -0.32% to 4,475, while the pan-European Euro Stoxx 50 index dips -0.31% to 3,020.