European stocks extended losses on Wednesday, pressured by a fresh bout of downbeat earnings.

In early trade and having already ended the previous session 1.5% lower, the Stoxx Europe 600 edged down 0.1%, mirroring similar declines on Germany's DAX 30, France's CAC 40 and London's FTSE 100.

Shares in British American Tobacco PLC, Finnish stainless steelmaker Outokumpu Oyj and Belgian food retailer Delhaize Group were some of the hardest hit by lackluster earnings.

Barclays PLC shares also slipped into the red after the British bank said it had taken a new GBP800 million ($1.2 billion) charge in the first quarter for potential fines over its foreign-exchange activities, dragging its net profit for the period down to GBP465 million, compared with GBP965 million in the same period last year.

In currency markets, the euro was broadly unchanged against the dollar. On Tuesday, the bloc's single currency rose to a near three-week high against the dollar, as the latter was hit by a disappointing U.S. consumer confidence report, and the former was supported by hopes that Greece might be able to secure some extra funding in the short-term.

Earlier this week, Greece shook up its negotiating team in talks with international creditors.

Yanis Varoufakis remains finance minister and will continue to represent Greece in meetings of European finance chiefs. But the team of negotiators around Mr. Varoufakis, responsible for much of the policy detail, will now be led by Greek officials who are seen in some European capitals as more promising interlocutors.

That has also supported Greek assets. Athens' main stock exchange rose 1.4% on Tuesday while yields on the country's debt fell. Yields fall as bond prices rise.

Early Wednesday, the yield on Greece's two-year bond stood at 19.8% in early trade, down from close to 30% at the start of last week. The yield on the country's 10-year bond was at 10.8%.

Nick Lawson, a senior trader at Deutsche Bank, warned nonetheless, that the reshuffle should not in any way be hailed as a solution to Greece's problems.

"It is the policies and not the person that matters in Greek negotiations," he said. "Whilst a new negotiating team maybe more personable, they don't have a new deck of policies to take to the table, " he added.

Economists at Barclays said that what could be construed as progress in Greece doesn't change their view on the euro either and they continue to believe it will be "negatively affected by political uncertainty and continued cyclical divergence" over the coming months.

"We continue to forecast the euro to reach $0.98 at the end of December 2015," they said.

Later in the session investors will be eyeing the Federal Open Market Committee's policy statement released at the conclusion of its two day meeting, which could shed more light on when the central bank might raise rates. Most economists and strategists, however, don't anticipate major policy changes.

"We don't expect any specific forward guidance on the timing of the liftoff but September remains our base-case," currency strategists at BNP Paribas wrote in a note.

In commodity markets Brent crude was trading 0.5% lower on the day at $64.33 per barrel. Gold declined 0.4% to $1,208.60 per troy ounce.

Write to Josie Cox at josie.cox@wsj.com

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