European Stocks Close Lower On Growth Concerns

(RTTNews) - European stocks closed lower on Tuesday with investors digesting the latest batch of economic data from Europe, China and the U.S., and closely following the U.S. debt ceiling talks.

Eurostat data showed the euro zone economy grew marginally in the first quarter, matching preliminary estimates. The euro zone economy grew by 0.1% in the quarter in the three months to March of 2023.

Elsewhere, the German ZEW headline number showed that the economic sentiment index deteriorated sharply to -10.7 in May from 4.1 in April.

The U.K.'s jobless rate came in higher than expected in the three months to March, reducing concerns over more interest rate hikes from the Bank of England. Data from the Office for National Statistics showed that the unemployment rate rose to 3.9% in the three months to March from 3.8% in the preceding period. The rate was forecast to remain unchanged at 3.8%.

Ongoing concerns about the U.S. debt ceiling also generated some negative sentiment ahead of a meeting between President Joe Biden and top congressional leaders.

The pan European Stoxx 600 ended 0.42% down. The U.K.'s FTSE 100 ended lower by 0.34%, Germany's DAX edged down 0.12% and France's CAC 40 declined 0.16%, while Switzerland's SMI drifted down 0.5%.

Among other markets in Europe, Austria, Belgium, Denmark, Finland, Iceland, Norway and Sweden ended with sharp to moderate losses. Czech Republic and Spain edged down marginally.

Greece, Poland, Portugal, Russia and Turkiye closed higher, while Ireland and Netherlands ended flat.

In the UK market, Vodafone ended more than 7% down after its new boss Margherita Della Valle said she would cut 11,000 jobs over the next three years. The company also warned of a 1.5 billion euro decline in free cash flow this year.

Imperial Brands ended more than 2% down after the cigarette maker said it is on track to meet its full-year guidance.

Kingfisher ended lower by about 3%. Prudential, BT, M&G, Croda International, Lloyds Banking, BP, Glencore, Royal Dutch Shell, Antofagasta, Fresnillo and Next lost 1 to 2.5%.

DCC rallied 2.8%. Land Securities, EasyJet, Carnival, Rolls-Royce Holdings, Centrica, Compass, Smiths, Royal Mail, Smith & Nephew and The Sage Group gained 1 to 2.5%.

In Paris, Bouygues tumbled 3.7% after reporting a slightly wider first-quarter net loss. Vivendi, Renault, Michelin, Teleperformance and Saint Gobain lost 2 to 2.5%.

Airbus Group and Alstom both gained more than 2.5%. Safran climbed about 2%, and Essilor surged nearly 1%.

In the German market, Zalando dropped 2.8%. Adidas, Siemens Healthineers, Puma and Commerzbank lost 2 to 2.5%. Porsche, Volkswagen, Daimler Truck Holding, Merck, BASF, Vonovia and Deutsche Bank lost 1 to 1.7%.

In Chinese economic data, industrial production posted an annual growth of 5.6% in April, faster than the 3.9% increase in March, the National Bureau of Statistics said. However, the pace of expansion was weaker than economists' forecast of 10.9%.

At the same time, retail sales growth accelerated sharply to 18.4% in April from 10.6% in March. Still, the rate missed expectations for a 21% increase.