European Stocks Close Lower On Growth Worries

(RTTNews) - European stocks closed on a weak note on Tuesday amid concerns about growth after the latest batch of data from Europe, the U.S. and China showed continued contraction in manufacturing activity.

Investors also digested a slew of corporate earnings updates, and awaited more economic data, including the crucial U.S. non-farm payroll report, due later in the week.

The pan European Stoxx 600 fell 0.89%. The U.K.'s FTSE 100 dropped 0.43%, Germany's DAX and France's CAC 40 lost 1.26% and 1.22%, respectively, while Switzerland's SMI edged down 0.08%.

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

Czech Republic, Ireland and Russia ended higher, while Denmark and Norway closed flat.

The HCOB Eurozone Manufacturing PMI fell to 42.7 in July from 43.4 in the previous month, marking the lowest in three years.

The euro area unemployment remained unchanged at a record low in June, Eurostat reported on Tuesday. The jobless rate came in at 6.4% in June, the same as in May and April. The rate for May was revised down from 6.5%. Economists had forecast the rate to remain at 6.5% in June.

The British manufacturing downturn deepened in July as output, new orders and employment all fell at faster rates amid market weakness, both domestically and internationally, survey results from S&P Global revealed Tuesday.

The Chartered Institute of Procurement & Supply Manufacturing Purchasing Managers' Index, or PMI, dropped to a seven-month low of 45.3 in July from 46.5 in May. The flash estimate was 45.0.

German unemployment rate fell unexpectedly in July, while the euro area unemployment rate held steady at 6.4% in June versus 6.5% expected.

In the UK market, Beazley lost more than 5%, and Fresnillo fell 4.4% after retaining its 2023 forecast.

JD Sports Fashion ended with a loss of 2.8% after an investigation by the U.K.'s Competition and Markets Authority (CMA) confirmed that JD Sports and Leicester City Football Club broke competition law.

Endeavour Mining, Natwest Group, Barclays, Pearson, St. James's Place, Anglo American Plc, Prudential and M&G lost 2 to 2.7%.

Weir Group climbed 2.15%. RightMove and Centrica gained 1.8% and 1.4%, respectively.

HSBC Holdings moved up 1.33% after raising its key performance target. The lender also announced a GBP 2 billion buy-back after its profits exceeded expectations.

In the German market, BMW drifted lower by about 5.4%. Deutsche Post lost 5.2% after it reported a fall in Q2 earnings and revenue.

Zalando ended 3.5% down, while Siemens, Sartorius, Daimler Truck Holding, Mercedes-Benz and Deutsche Boerse lost 2 to 3%.

Daimler Truck Holding fell more than 2% after incoming orders dropped in the second quarter.

MTU Aero Engines, HeidelbergCement, Continental and Porsche gained 1 to 1.4%.

In Paris, Eurofins Scientific drifted down 3.7%. WorldLine ended lower by 3.3%. Teleperformance, Safran, Essilor, LVMH, ArcelorMittal, Hermes International, Stellantis, BNP Paribas, Vinci and Societe Generale lost 1.7 to 2.6%.

CapGemini rallied 2.5%. Legrand and Carrefour also ended notably higher.