European stocks sagged on Tuesday, erasing gains seen at the start of the week as a mixed bag of earnings results and disappointing economic data weighed on major bourses.
How did markets perform?
The Stoxx Europe 600 SXXP, -0.16% fell 0.4% to 354.05, after gaining 0.9% on Monday. The index is headed for a 7.6% loss in October; for the month, the index is down 7.2%, poised for its biggest loss since August 2011 when it tumbled more than 10%.
The euro EURUSD, -0.0528% bounced around on Tuesday, sliding earlier in the session on growth data, then recovering after German inflation numbers came in higher than expected. The euro was last trading at $1.1376 from $1.1404 late Monday in New York. The pound GBPUSD, -0.4064% was trading at $1.2768 from $1.2794.
What drove the market?
Third-quarter eurozone GDP reading disappointed, with growth of 1.7% year-over-year in the months between July and September, versus consensus expectations of 1.8% and the previous growth rate of 2.2%. The data was unsettling, coming a day after German Chancellor Angela Merkel announced she will eventually leave politics by 2021.
Then another batch of data showed German inflation hitting the highest levels since 2008.
Europe also struggling to gain against a backdrop of higher U.S. equities, as Wall Street rallied a day after another session of volatility and losses. Sentiment in Europe was also dampened by a batch of downbeat earnings.
What stocks were active?
Weighing on Europe’s main index, Reckitt Benckiser Group PLC RB., -4.75% slumped 5% after the consumer-goods company said it was on track to meet full-year targets after higher revenue in the third quarter. But it warned that a temporary manufacturing disruption could mean a “residual impact” in the fourth quarter and into 2019.
Volkswagen AG VOW3, +2.39% stood out among the gainers, up 3.9% after the German auto maker posted a third-quarter profit and sales rise despite industry headwinds such as China demand and emissions standards tightening up in Europe.
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