European markets were lower, with financial leaders in low, so soft inflation data and a study British weaker than expected German investors weighed on the shares despite earlier gains in Asia.
The Dow Jones Stoxx 600 lost 0.4% to 243.47, the FTSE 100 lost 0.2% to 5202.16, the DAX in Frankfurt was 0.4% lower to 5758.93 and the CAC-40 Paris fell 0.4% to 3830.08.
Modest losses in Europe were as surprised as the FTSE and the DAX had beaten high peak years in the previous session amid growing optimism about future profits.
Some of these hopes have been diluted somewhat by news that inflation in Britain fell to a minimum of five years from 1.1% in year to September. "The inflation data suggests that we are not a million miles away from heading toward deflation," said David Buik, market analyst at BGC Partners. Meanwhile, the German ZEW institute reported that business confidence in the largest euro zone economy fell slightly in September. It said its main index fell to 56 from 57.7 – the first monthly drop in a year.
Banks and insurance companies leading low, Lloyds, Barclays and Legal and General all losing more than 2.4% in London. In Frankfurt, Allianz and Deutsche Bank fell 1.7% and 1.5% respectively, while Crédit Agricole and AXA fell more than 2% in Paris.
On currency markets Tuesday, the euro bought $ 1.4768 in morning European trading, up from $ 1.4776 Monday in New York. The British pound fell to $ 1.5749 from $ 1.5786 while the dollar rose to ¥ 90.11 from ¥ 89.84. In the oil market, the futures contract Nymex November crude fell 10 cents to $ 73.17 a barrel, after settling $ 1.50 higher Monday.
Related posts: