European Stocks Close Lower On Growth Worries As Markets Await Fresh Data

European stocks closed lower on Tuesday as Middle East tensions and concerns about the outlook for China’s economic growth due to a lack of fresh stimulus plans rendered the mood a bit bearish. Also, investors were wary of taking significant fresh positions ahead of key U.S. economic data, including reports on consumer and producer price inflation.

Traders ignored positive data that showed German industrial production expanded more than expected in August after falling in the previous month.

Data from Destatis revealed that German industrial output grew 2.9% on month in August, reversing a revised 2.9% decline in July. Economists had expected a 0.8% rebound for the month. On a yearly basis, industrial production logged a 2.7% drop, slower than the 5.6% decrease in July.

France’s trade deficit increased in August from a year ago as imports grew faster than exports, data released by the customs office showed on Tuesday.

The trade deficit rose to EUR 7.4 billion in August from EUR 6.0 billion in July. The expected shortfall was EUR 5.5 billion. In the corresponding month last year, the trade deficit was EUR 8.1 billion.

The pan European Stoxx 600 ended down 0.55%. The U.K.’s FTSE 100 closed down 1.36%, Germany’s DAX ended lower by 0.2% and France’s CAC 40 settled 0.72% down, while Switzerland’s SMI edged up 0.02%.

Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, Netherlands, Norway, Poland, Portugal, Russia and Sweden closed weak. Iceland, Spain and Turkiye ended higher.

European drinks makers all slumped after China announced temporary anti-dumping measures on European brandy imports, days after the EU’s vote on electric vehicle tariffs.

In the UK market, Vistry Group plunged nearly 25%.

Anglo American Plc shed 6.7% and Antofagasta ended down 5.1%. Rio Tinto, Glencore, Prudential, HSBC Holdings, BP, Melrose Industries, DCC, Shell, Spirax Group, Standard Chartered, B&M European Value Retail and 3i Group lost 2 to 5%.

Imperial Brands climbed more than 4%. IAG, Ashtead Group, Hikma Pharmaceuticals, Marks & Spencer and Reckitt Benckiser gained 1 to 2.2%.

In the German market, Porsche, BASF and Fresenius Medical Care lost 3.2 to 4%. Siemens, Puma, Brenntag, Mercedes-Benz, BMW, HeidelbergCement, Infineon, Bayer, Volkswagen and Adidas ended down 1 to 2.3%.

SAP climbed nearly 3.5%. E.ON, Hannover Rueck, Munich RE, Deutsche Boerse, Merck, Continental, Zalando and MTU Aero Engines gained 1 to 1.5%.

In the French market, Kering, Pernod Ricard, LVMH, ArcelorMittal and Teleperformance lost 3.3 to 4.4%. Dassault Systemes, L’Oreal, TotalEnergies, Stellantis, STMicroElectronics and Michelin ended down 1.3 to 2.1%.

Renault rallied nearly 3%. Thales gained about 2% and Orange advanced 1.8% while Eurofins Scientific and Schneider Electric both gained about 1%.