European Stocks Close Lower On Trade Concerns, U.S. Inflation Data

(RTTNews) - European stocks closed lower on Tuesday, extending recent losses, despite some optimism about the European Union striking a trade deal with the U.S. in the coming weeks. Data showing an acceleration in U.S. inflation in the month of June hurt sentiment.

Investors largely made cautious moves while assessing ongoing trade negotiations between the U.S. and EU, and reacting to the latest set of economic data from the region.

Data showing a steady pace of growth in China aided sentiment, but U.S. inflation report weighed.

The pan European Stoxx 600 closed down 0.37%. The U.K.'s FTSE 100 ended 0.66% down, Germany's DAX fell 0.42% and France's CAC 40 drifted down 0.54%. Switzerland's SMI settled lower by 0.32%.

Among other markets in Europe, Belgium, Denmark, Finland, Norway, Poland, Spain and Turkiye closed weak.

Greece, Iceland, Netherlands and Russia ended higher, while Czech Republic, Ireland, Portugal and Sweden closed flat.

In the UK market, Barratt Redrow tanked 9.4% after the housebuilder missed its own sales guidance in the year to the end of June. Retailer B&M European Value Retail fell more than 6% after the company's first-quarter sales missed forecasts.

Convatec Group ended 5.6% down. Fresnillo, Endeavour Mining, JD Sports Fashion, Taylor Wimpey, Persimmon, Airtel Africa, Imperial Brands, Kingfisher, Coca-Cola Europacific Partners, Rio Tinto, Smith & Nephew, Unilever, AstraZeneca and GSK lost 1.5 to 5%.

Experian rallied 4.3%. WPP, Polar Capital Technology Trust, Bunzl, Associated British Foods, Hikma Pharmaceuticals, Informa, Standard Chartered and Melrose Industries gained 0.6 to 1.4%.

In Germany, Commerzbank ended down nearly 3%. Rheinmetall, Allianz, MTU Aero Engines, Fresenius, Deutsche Telekom, Munich RE and Deutsche Boerse lost 1 to 2%.

Brenntag climbed nearly 3%. BMW, Mercedes-Benz, Porsche, Volkswagen, BASF, Puma, Siemens Energy and Zalando also closed with strong gains.

In the French market, STMicroElectronics tanked 14%. Thales, Veolia Environment, Societe Generale, Airbus, L'Oreal, Engie, Vinci, Orange, Bouygues, Credit Agricole and Sanofi lost 1 to 2.5%.

Teleperformance climbed 1.6%. Stellantis, Legrand, Renault, Schneider Electric and Dassault Systemes posted moderate gains.

On the economic front, German economic sentiment improved more than expected in July on hopes of a quick resolution to the US-EU tariff dispute and potential stimulus from the federal government, a monthly survey conducted by the think tank ZEW showed.

The ZEW Indicator of Economic Sentiment rose to 52.7 in July from 47.5 in the previous month. The reading was also above forecast of 50.8.

Similarly, the current situation index climbed sharply to -59.5 from -72.0 in the prior month. The score was seen at -65.5.

Eurozone industrial production recovered in May, underpinned by strong rebound in non-durable consumer goods output, data from Eurostat showed.

Industrial output grew at a faster-than-expected pace of 1.7% on a monthly basis in May, in contrast to the 2.2% decrease in April. Economists had forecast a 0.6% rise.

On a yearly basis, growth in industrial production accelerated to 3.7% from 0.2% in the previous month. Output was forecast to climb 2.9%.

Industrial production in the EU27 climbed 1.5% month-on-month in May and expanded 3.4% from the previous year.

The U.S. Labor Department said its consumer price index rose by 0.3% in June after inching up by 0.1% in May.

The annual rate of consumer price growth accelerated to 2.7% in June from 2.4% in July. Economists had expected the price of growth to rise to 2.6%.

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