European Stocks Extend Downward Trend Amid Interest Rate Concerns

Extending a recent downward trend, European stocks moved mostly lower on Tuesday amid ongoing concerns about persistently high interest rates and a weakening Chinese economy.

The recent surge in oil prices and worries around a possible U.S. government shutdown also weighed on the markets.

The pan European STOXX 600 Index fell by 0.6 percent, closing lower for the fourth consecutive session.

The German DAX Index slumped by 1.0 percent and the French CAC 40 Index shed 0.7 percent, while the U.K.’s FTSE 100 Index bucked the downtrend and closed just above the unchanged line.

Engineering giant Smiths Group tumbled by 4.0 percent despite reporting a record increase in operating profit for the year to July.

ASOS also fell by 1.5 percent after the online fashion retailer reported a drop in sales in the fourth quarter and warned profit would be around the bottom of its guided range.

China-exposed LVMH, Kering and Hermes International also dropped, as developments at Chinese developers China Evergrande Group and China Oceanwide Holdings dampened hopes for an economic recovery in the world’s second largest economy.

Meanwhile, Swiss drug major Novartis AG edged higher after its unit Sandoz announced that the European Commission granted marketing authorization for Tyruko (natalizumab) for multiple sclerosis in Europe.

Origin Enterprises, a farm services provider, surged 4.8 percent in London despite reporting a lower profit before tax for fiscal 2023.

British lender Barclays also jumped by 3.9 percent after Morgan Stanley upgraded its rating on the company’s stock to Overweight from Equal Weight.

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