Investing.com – European stocks reversed early gains to end lower on Tuesday, as miners led markets lower after China unexpectedly raised its benchmark interest rate, raising the prospect of a slowdown in global growth.
At the close of European trade, the EURO STOXX 50 was down 0.43%; France’s CAC 40 fell 0.68%; the FTSE 100 decreased 0.67%; while Germany's DAX shed 0.40%.
Earlier in the day, China's central bank said it had raised its benchmark deposit and lending rates by 0.25% for the first time since December 2007. The move was likely to slow China's rapid economic growth and dampen demand for commodities as an alternative asset.
Shares in silver producer Fresnillo tumbled 5.27%, the world’s largest miners BHP Billiton saw its shares fall 2.13% and rivals Rio Tinto plunged 3.24%. Meanwhile, Xstrata tumbled 4.37% after its stocks were downgraded by HSBC Holdings.
But financial shares were higher after global investment bank Goldman Sachs reported that third quarter earnings fell less-than-expected earlier in the day on Wall Street.
Shares in Deutsche Bank soared 2.03%, French lender Societe Generale climbed 1.41% and Italian financial service provider Intesa Sanpaolo jumped 1.16%.
Meanwhile, across the Atlantic, U.S. markets were down: the Dow Jones Industrial Average fell 0.82%, the S&P 500 index dropped 0.76%, while the Nasdaq Composite index tumbled 1.01%.
Earlier Monday, official data showed that U.S. building permits fell unexpectedly in October while housing starts rose more-than-expected.
At the close of European trade, the EURO STOXX 50 was down 0.43%; France’s CAC 40 fell 0.68%; the FTSE 100 decreased 0.67%; while Germany's DAX shed 0.40%.
Earlier in the day, China's central bank said it had raised its benchmark deposit and lending rates by 0.25% for the first time since December 2007. The move was likely to slow China's rapid economic growth and dampen demand for commodities as an alternative asset.
Shares in silver producer Fresnillo tumbled 5.27%, the world’s largest miners BHP Billiton saw its shares fall 2.13% and rivals Rio Tinto plunged 3.24%. Meanwhile, Xstrata tumbled 4.37% after its stocks were downgraded by HSBC Holdings.
But financial shares were higher after global investment bank Goldman Sachs reported that third quarter earnings fell less-than-expected earlier in the day on Wall Street.
Shares in Deutsche Bank soared 2.03%, French lender Societe Generale climbed 1.41% and Italian financial service provider Intesa Sanpaolo jumped 1.16%.
Meanwhile, across the Atlantic, U.S. markets were down: the Dow Jones Industrial Average fell 0.82%, the S&P 500 index dropped 0.76%, while the Nasdaq Composite index tumbled 1.01%.
Earlier Monday, official data showed that U.S. building permits fell unexpectedly in October while housing starts rose more-than-expected.