The regional Stoxx 600 index closed the day down 0.6%, with all major bourses in the red
European stocks closed lower on Tuesday and logged their first negative month since October after a string of earnings and data weighed on investor sentiment.
The regional Stoxx 600 index closed the day down 0.6%, with all major bourses in the red.
Most sectors declined, with autos dropped 4.3% and basic resources declining 1.14%. Healthcare stocks were one of the only sectors in the green, ending up 0.2%.
Preliminary data showed that euro zone inflation was steady at 2.4% in April, in line with estimates. Core inflation, which strips out energy, food, alcohol and tobacco, came in at 2.7%.
Meanwhile, GDP for the bloc increased 0.3% over the first three months of the year, following a 0.1% contraction in the final quarter of 2023.
For April, the Stoxx 600 dropped 1.49% — the first month since October that it has closed the month in the red.
Overnight, Asia-Pacific markets largely gained on Tuesday, tracking Wall Street moves, with investors digesting China manufacturing PMI for April.
Meanwhile, U.S. stocks dropped on disappointing earnings and inflation data. Investors this week are bracing for megacap earnings, the latest Fed interest rate decision on Wednesday, and a jobs report.
The U.S. central bank is broadly expected to keep interest rates steady, but traders will be listening to see if Chair Jerome Powell’s post-meeting comments are more hawkish after the recent spate of hotter inflation reports.
Europe’s auto sector dropped more than 4% on Tuesday after disappointing earnings from a number of carmakers.
Both Mercedes and Volkswagen reported a drop in profit; their shares dropped 5.2% and 4.6%, respectively.
Shares of Stellantis slid more than 10% after it reported a drop in revenue.
