European stocks traded lower on Tuesday, after having opened on a firm note earlier on expectations for Fed rate cuts and a soft landing of the world’s largest economy.
Markets reversed gains after data showed Germany’s industrial production unexpectedly declined in November, marking the sixth monthly fall in a row.
Industrial production slid 0.7 percent on a monthly basis in November, following a revised 0.3 percent drop in October. Output was forecast to grow 0.2 percent.
Elsewhere, France’s trade deficit decreased in November due to a sharp fall in imports, data released by customs office showed earlier today.
The trade deficit narrowed more-than-expected to EUR 5.9 billion in November from EUR 8.5 billion in October. The shortfall was forecast to fall moderately to EUR 7.9 billion.
Eurozone unemployment figures will be out later in the day.
Investors also awaited key U.S. inflation data this week for important clues on the Fed’s rate trajectory.
Also, the U.S. earnings season starts in earnest later this week, with banks JPMorgan Chase, Bank of America and Citigroup due to report fourth quarter and full-year results on Friday.
The pan European STOXX 600 was down 0.2 percent at 477.38 after rising 0.4 percent on Monday.
The German DAX and France’s CAC 40 both slipped 0.2 percent, while the U.K.’s FTSE 100 was down 0.1 percent.
German insurance giant Munich Re dropped half a percent after sharing an update on cost of natural disasters in 2023.
Camping vans maker Trigano jumped 3.4 percent in Paris after posting higher revenue in its fiscal first quarter.
Warhammer maker Games Workshop Group slumped 4 percent in London despite delivering strong half-year results.
GSK rose half a percent after it struck a $1.4bn deal to acquire Anglo-American biotech Aiolos Bio.
Hill & Smith, the provider of sustainable infrastructure products and services, fell about 1 percent after acquiring Capital Steel Service, LLC for $6.25m.
Market Analysis
European Shares Give Up Initial Gains
2024-01-09 09:37:39
