Forexpros – European stock markets were lower after the open on Tuesday, as markets continued to consolidate recent gains and look to fresh economic data from the U.S. for direction.
During European morning trade, the EURO STOXX 50 declined 0.85%, France’s CAC 40 slumped 0.95%, while Germany’s DAX 30 fell 0.8%.
The mild losses in European stocks followed a subdued trading session in Asia, as the absence of catalysts and a holiday in Japan led to a rather quiet session.
Shares in automakers led losses early on, as concerns over a deeper-than-expected slowdown in Chinese economic growth weighed on future demand prospects from the Asian nation.
Shares in Germany’s BMW tumbled 4.15%, a day after Goldman Sachs removed the stock from its conviction-buy list, while shares in rivals Daimler and Volkswagen dropped 3.45% and 2.55% respectively.
In France, Peugeot shares retreated 2.7%, while Renault declined 2.75%.
China increased fuel prices for the second time in less than six weeks on Monday, sparking concern growth in the world’s fastest-growing major economy may slow more-than-expected.
A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of Europe’s debt crisis.
Shares in the financial sector were also lower, a day after Greece concluded an auction to settle credit-default-swap contracts on its government bonds. Societe Generale shares declined 1%, while Deutsche Bank retreated 0.6%.
But Italy’s Unicredit rose 0.5% as investors eyed the outcome of talks aimed at reforming Italy’s economy.
On the upside, Deutsche Lufthansa saw shares rise 0.8% after UBS raised its rating on the stock to ‘buy’ from ‘neutral’.
Elsewhere, London’s commodity-heavy FTSE 100 declined 0.8%, as miners led losses amid concerns over a slowdown in demand from China, which was the top consumer for many commodities.
Mining giant BHP Billiton dropped 2.2% after its chairman reportedly said the miner was revaluating its capital-spending plans amid slowing growth in China. The company also said Chinese demand for iron ore was “flattening out.”
The comments weighed on Rio Tinto, which fell 2.9%, while copper miners Kazakhmys and Xstrata declined 3.1% and 2.2%
Shares in ARM Holdings bucked the trend, rising 0.85% after Barclays Capital lifted the stock to ‘overweight’ from ‘equal weight’.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a drop of 0.4%, S&P 500 futures slumped 0.4%, while the Nasdaq 100 futures indicated a decline of 0.4%.
Later in the day, the U.S. was to produce official data on building permits and housing starts. Meanwhile, Federal Reserve Chairman Ben Bernanke was to speak at an event in Washington; his comments would be closely watched.
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