Retailers hit by Walmart profit warning
UBS slides on profit miss
London39;s FTSE 100 rises on Unilever boost
EU to approve emergency proposal to curb gas demand

July 26 Reuters European stocks were flat on Tuesday as a slide in retailers and Swiss bank UBS offset a rally in oil stocks and Unilever, which rose after an upbeat sales forecast.

Retail stocks lost 2.1, set for their biggest drop in sixweeks, hit by a profit warning from top U.S. retailer Walmart Inc, which cited surging prices for food and fuel affecting discretionary demand.

Europe39;s luxury stocks fell, with LVMH down 0.3. However, French liquor maker Remy Cointreau rose 0.4 after an earnings beat. 

Swiss bank UBS lost 6.3 on posting a smallerthanexpected rise in secondquarter net profit as its investment banking and wealth management businesses struggled.

The panEuropean STOXX 600 index was flat with broader sentiment remaining fragile on recession worries.

European Union countries are set to approve a weakened emergency proposal to curb their gas demand on Tuesday after Russia said it will further cut gas supplies to Europe from Wednesday. 

We think the EU might be able to avoid gas rationing … but the risks have risen significantly, Credit Suisse European economist Veronika Roharova said.

Even if rationing is avoided the surge in gas prices driven by supply uncertainty will depress activity further.

Data on Monday showed Europe39;s biggest economy, Germany, maybe on the cusp of a…