Stocks finish lower following U.S. inflation data

by Jonathan Adams
European stocks

The pan-European Stoxx 600 dropped by 0.2%, the S&P 500 shed 0.35% to 4,685 points, the Dow declined 0.31% to 36,320 points, and the Nasdaq tumbled 0.60% to 15,887 points

European stocks finished lower Tuesday, as investors assessed a key reading of U.S. inflation data.

The pan-European Stoxx 600 closed down by 0.2% provisionally, having been in positive territory earlier. Basic resources shares declined 1.2%, while the retail sector rose 1.2%.

The U.S. October producer price index came in as expected Tuesday, with PPI rising 0.6% month over month, in line with estimates. The consumer price index (CPI), slated for Wednesday, will also be closely watched.

US stocks took a breather on Tuesday at the close after an eight-day winning streak. Stocks dipped in early trading Tuesday, after the major averages closed at records the day before, boosted by strength in infrastructure stocks.

At the close, the S&P 500, which yesterday closed above 4,700 points for the first time, shedding 0.35% to end the day at 4,685 points. Meanwhile, the Dow also declined by 0.31% to close at 36,320 points, and the Nasdaq tumbled 0.60% to 15,887 points as investors sent Tesla stock down 12% on rumours of an Elon Musk stock sale.

Earnings in Europe before the bell came from the likes of Bayer, Munich Re and Porsche.

In terms of individual stocks, Primark owner AB Foods jumped 8% to lead the Stoxx 600 following strong results.

Toward the bottom of the European blue chip index, Swedish Match dropped 5.2% after JPMorgan cut the stock to “underweight.” Darktrace was the worst individual performer, declining 6.1% as investors took profit after a 12% surge in the share price a day earlier.

On the data front, Germany’s ZEW survey of economic sentiment vastly outstripped expectations in November, coming in at 31.7 vs. a forecast of 20.0.

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