European Shares Fall On Geopolitical Worries, US Rate Woes

(RTTNews) - European stocks were sharply lower on Tuesday amid signs of escalating tensions in the Middle East and uncertainty over the Fed's rate trajectory.

Israel is weighing possible response actions to Iran's aggression, but it is not clear if a decision has been made.

In economic releases, German wholesale prices dropped 3.0 percent on a yearly basis in March, the same as in February - data from Destatis revealed earlier today. Wholesale prices have been falling since April 2023.

The headline German ZEW Economic Sentiment Index jumped from 31.7 in March to 42.9 in April, beating forecasts.

The ILO U.K. jobless rate rose to 4.2 percent in three months to February from 3.9 percent in three months to January, the Office for National Statistics said.

The pan European STOXX 600 dropped 1.4 percent to 498.82 after closing 0.1 percent higher on Monday.

The German DAX and the U.K.'s FTSE 100 both were down around 1.4 percent, while France's CAC 40 slipped 1.2 percent.

The dollar rose to a five-month high against the euro and pound after the release of stronger-than-expected U.S. retail sales data for March.

In corporate news, Sweden's Ericsson jumped 6.5 percent after posting better-than-expected first-quarter earnings.

Superdry shares plummeted 29 percent in London after the struggling retailer said it would delist from the London Stock Exchange as part of a far-reaching restructuring plan.

Similarly, Dr Martens plunged 30 percent after the shoemaker flagged a challenging 2025 outlook and announced the departure of chief executive Kenny Wilson.

Global payments technology company Wise slumped 7.6 percent after revenue in its fourth quarter came in below analyst estimates.

Vallourec fell nearly 2 percent in Paris. The steel tube products manufacturing company said it launched offering of $820 million Senior Notes due 2032.

German skincare maker Beiersdorf gained 1.7 percent after upgrading its 2024 sales guidance.