European Stocks Close Lower On Growth Worries

(RTTNews) - European stocks closed lower on Tuesday, weighed down by concerns about economic slowdown after weak services activity in China and slowing eurozone business activity.

The pan European Stoxx 600 ended down 0.23%. The U.K.'s FTSE 100 drifted down 0.2%, Germany's DAX and France's CAC 40 both ended lower by 0.34%, while Switzerland's SMI dropped 0.86%.

Among other markets in Europe, Czech Republic, Finland, Iceland, Ireland, Poland, Portugal, Russia and Spain ended weak.

Austria, Greece, Norway, Sweden and Turkiye closed higher, while Belgium, Denmark and Netherlands ended flat.

In the UK market, B&M European Value Retail, Croda International, Ashtead Group, Tesco, Ocado Group, Bunzl and Flutter Entertainment lost 2 to 3.4%.

Johnson Matthey, Kingfisher, Smith & Nephew, ABRDN, CRH, Entain, Anglo American Plc, Hargreaves Lansdown, Melrose Industries, Prudential and Natwest Group lost 1.2 to 2%.

Whitbread rallied 2.3%. Centrica, BP, Weir Group, IHG, Vodafone Group, Antofagasta and Shell gained 1 to 2%.

In the German market, Commerzbank tumbled more than 6%. Fresenius Medical Care ended 4.4% down. Siemens Energy, Zalando, Deutsche Bank, HeidelbergCement, Fresenius, Deutsche Post and Sartorius lost 2 to 3.7%.

BASF, Adidas, RWE, Covestro, Puma, Qiagen and Infineon Technologies also ended notably lower.

BMW, Porsche, Continental, Hannover Rueck and Deutsche Telekom ended higher by 1 to 2.2%.

In Paris, Eurofins Scientific, WorldLine, Teleperformance, Carrefour, Kering and Credit Agricle lost 2 to 2.7%.

LVMH, Veolia, Air Liquide, Saint Gobain, Alstom, Engie, Danone and Pernod Ricard ended lower by 1 to 1.7%.

Total Energies and Michelin both ended higher by about 2%. Renault climbed 1.6% and Sanofi advanced about 1%.

In economic news, the euro area private sector economy contracted the most in nearly three years in August with broad based deterioration across the manufacturing and services sectors, results of the purchasing managers' survey showed.

The HCOB composite output index fell to 46.7 in August from 48.6 in July, final data compiled by S&P Global revealed Tuesday. The initial score was 47.0 for August.

Data released by Eurostat showed eurozone producer prices declined for the third straight month in July and at the fastest pace in fourteen years on a sharp reduction in energy prices.

The producer price index posted an annual decline of 7.6% in July, faster than the 3.4% decrease in June. That was in line with expectations.

Moreover, this was the steepest decline since July 2009, when prices had fallen 8.2%.

On a monthly basis, producer prices fell 0.5% in July versus a 0.4% drop in June. The expected decline was 0.6%.

A survey by the European Central Bank showed on Tuesday that consumer inflation expectations for the euro area for the next 12 months were unchanged, while those for the three years ahead edged up. Elsewhere, ECB Chief Economist Philip Lane said that the modest easing in goods inflation and services inflation was "a very welcome development", but the trend has to continue.

The UK services sector witnessed a downturn for the first time this year, mostly due to weaker business and consumer spending, survey results from S&P Global and the Chartered Institute of Procurement & Supply showed Tuesday.

The final services business activity index dropped to 49.5 in August from 51.5 in the previous month. The flash score was 48.7.

UK car sales continued to increase strongly in August, boosted by the highest monthly market share for electric vehicles, though regulatory concerns stand as a threat in the future, the Society of Motor Manufacturers and Traders, or SMMT, said on Tuesday.

Car registrations grew by 24.4% year-over-year in August.