Investing.com - European stocks remained lower on Tuesday, despite the releasse of positive German data, as investors were cautious ahead of the Federal Reserve's highly anticipated policy meeting, due to begin later in the day.
During European afternoon trade, the EURO STOXX 50 declined 0.33%, France’s CAC 40 retreated 0.69%, while Germany’s DAX 30 slipped 0.12%.
In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment soared by 7.4 points to hit 62.0 this month from November’s reading of 54.6. Analysts had expected the index to rise by 0.4 points to 55.0 in December.
Official data also showed that consumer price inflation in the euro zone held steady at a seasonally adjusted 0.9% last month, unchanged from an initial estimate and in line with expectations. Euro zone inflation rose by 0.7% in October.
Meanwhile, investors remained cautious ahead of the outcome of the Fed’s two-day policy meeting on Wednesday, with some expecting the bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
Markets were also eyeing U.S. inflation data due out later in the session amid concerns that the subdued inflation outlook could prompt the Fed to keep its stimulus program in place for longer.
Financial stocks pushed lower, as French lenders BNP Paribas and Societe Generale tumbled 1.43% and 0.71%, while Germany's Deutsche Bank lost 1.07%.
Among peripheral lenders, Spanish banks BBVA and Banco Santander slid 0.31% and 0.86% respectively, while Italy's Intesa Sanpaolo dropped 0.55%.
Elsewhere, Rexel plummeted 1.38% as Ray Investment SARL said it will sell a 7% stake in the electrical-equipment distributor.
On the upside, Zurich Insurance Group rallied 1.85% after Swiss Re Ltd.’s Chief Financial Officer George Quinn quit to join Switzerland’s biggest insurer.
In London, commodity-heavy FTSE 100 shed 0.21%, weighed by losses in the energy sector.
Shares in oil and gas major BP retreated 1.30%, while rivals Anglo American and Petrofac retreated 0.81% and 2.66%.
Meanwhile, mining companies turned mixed, as Glencore Xstrata gained 0.50% and Rio Tinto jumped 1.11%, while Vedanta Resources and Polymetal lost 1.38% and 1.66% respectively.
In the financial sector, the Royal Bank of Scotland edged down 0.16% and Barclays dropped 0.66%, while HSBC Holdings tumbled 1.11%. Lloyds Banking overperformed on the other hand, up 0.20%.
In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.01% gain, S&P 500 futures signaled a 0.08% loss, while the Nasdaq 100 futures indicated a 0.06% dip.
Also Tuesday, Angela Merkel was elected to a third term as German chancellor by the lower house of parliament, paving the way for her grand coalition government to be sworn in later in the day.
During European afternoon trade, the EURO STOXX 50 declined 0.33%, France’s CAC 40 retreated 0.69%, while Germany’s DAX 30 slipped 0.12%.
In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment soared by 7.4 points to hit 62.0 this month from November’s reading of 54.6. Analysts had expected the index to rise by 0.4 points to 55.0 in December.
Official data also showed that consumer price inflation in the euro zone held steady at a seasonally adjusted 0.9% last month, unchanged from an initial estimate and in line with expectations. Euro zone inflation rose by 0.7% in October.
Meanwhile, investors remained cautious ahead of the outcome of the Fed’s two-day policy meeting on Wednesday, with some expecting the bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
Markets were also eyeing U.S. inflation data due out later in the session amid concerns that the subdued inflation outlook could prompt the Fed to keep its stimulus program in place for longer.
Financial stocks pushed lower, as French lenders BNP Paribas and Societe Generale tumbled 1.43% and 0.71%, while Germany's Deutsche Bank lost 1.07%.
Among peripheral lenders, Spanish banks BBVA and Banco Santander slid 0.31% and 0.86% respectively, while Italy's Intesa Sanpaolo dropped 0.55%.
Elsewhere, Rexel plummeted 1.38% as Ray Investment SARL said it will sell a 7% stake in the electrical-equipment distributor.
On the upside, Zurich Insurance Group rallied 1.85% after Swiss Re Ltd.’s Chief Financial Officer George Quinn quit to join Switzerland’s biggest insurer.
In London, commodity-heavy FTSE 100 shed 0.21%, weighed by losses in the energy sector.
Shares in oil and gas major BP retreated 1.30%, while rivals Anglo American and Petrofac retreated 0.81% and 2.66%.
Meanwhile, mining companies turned mixed, as Glencore Xstrata gained 0.50% and Rio Tinto jumped 1.11%, while Vedanta Resources and Polymetal lost 1.38% and 1.66% respectively.
In the financial sector, the Royal Bank of Scotland edged down 0.16% and Barclays dropped 0.66%, while HSBC Holdings tumbled 1.11%. Lloyds Banking overperformed on the other hand, up 0.20%.
In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.01% gain, S&P 500 futures signaled a 0.08% loss, while the Nasdaq 100 futures indicated a 0.06% dip.
Also Tuesday, Angela Merkel was elected to a third term as German chancellor by the lower house of parliament, paving the way for her grand coalition government to be sworn in later in the day.