VIENNA (dpa-AFX) - The European markets began Tuesday's session with early strength, thanks largely to the better than expected German retail sales report. However, the early gains were short lived, as investors took advantage of an opportunity to take some profits. The European markets ended the session solidly to the downside.
Markets in the United States are also under pressure Tuesday, following the gains of the previous session. The lack of major U.S. economic data has kept some traders on the sidelines. Investors will be watching for the release of the U.S. employment report for February on Friday.
Germany's retail sales growth accelerated unexpectedly in January to log its fastest gain in four-and-a-half years, boosting hopes of consumer spending cushioning economic growth. Retail sales annual growth improved for the second straight month in January, to 5.3 percent from 4.8 percent in December, data released by Destatis showed Tuesday. Economists had forecast only 3.0 percent growth for January.
Investors' concerns about a possible euro area break-up reached its worst level since March 2013 despite a temporary solution reached on Greece last week, a survey conducted by the think tank Sentix showed Tuesday.
The Euro Break-up Index (EBI) rose to 38 percent from 24.3 percent in January. The index suggests that 38 percent of all surveyed investors expect the euro to break up within the next twelve months. This was the highest reading since March 2013 when respondents were concerned about elections in Italy and the unclear financial situation of Cyprus.
The Euro Stoxx 50 index of eurozone bluechip stocks decreased by 1.03 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.83 percent.
The DAX of Germany dropped by 1.14 percent and the CAC 40 of France fell by 0.98 percent. The FTSE of the U.K. declined by 0.74 percent and the SMI of Switzerland finished lower by 1.12 percent.
In Frankfurt, Heidelberger Druckmaschinen climbed by 5.43 percent. The printing machine maker announced an agreement with investment company CoBe Capital to acquire the Netherlands-based Printing Systems Group.
BMW declined by 2.80 percent and Volkswagen lost 2.38 percent. Daimler also finished lower by 1.05 percent.
Deutsche Bank dropped by 2.06 percent and Commerzbank fell by 1.29 percent.
In Paris, BNP Paribas decreased by 3.10 percent. Societe Generale dropped by 2.25 percent and Credit Agricole lost 1.26 percent.
Renault fell by 2.64 percent and Peugeot declined by 1.52 percent.
In London, Barclays, which announced financial results, fell by 3.22 percent.
Glencore fell by 3.11 percent, despite its better than expected full year earnings report.
Building materials supplier Travis Perkins dropped by 4.00 percent, after full-year results were announced.
Moneysupermarket.com sank by 8.98 percent. The price-comparison website for financial products said it has traded strongly in the first two months of 2015, but the comparatives would become tougher from the second quarter.
Hargreaves Lansdown gained 0.95 percent. Stagecoach issued a trading update and climbed by 0.95 percent.
Taylor Wimpey rose by 2.07 percent. The company's full year profit increased by 38 percent and raised its dividend.
Eurozone producer prices declined the most since November 2009 on falling energy prices, Eurostat reported Tuesday. Producer prices fell more-than-expected 3.4 percent on a yearly basis in January, following a 2.6 percent drop in December. This was the biggest fall since November 2009, when prices fell 4.4 percent. Economists had forecast a decline of 3 percent.
Switzerland's economy grew more-than-expected in the fourth quarter with momentum underpinned by domestic spending and foreign demand for goods, data from the State Secretariat for Economic Affairs showed Tuesday.
Gross domestic product advanced 0.6 percent from the third quarter, when it rose a revised 0.7 percent. Economists had forecast the growth rate to ease to 0.3 percent.
The U.K. construction sector expanded strongly in February as new orders logged the steepest rise since October 2014, survey data from Markit showed Tuesday. The Chartered Institute of Procurement & Supply/Markit construction Purchasing Managers' Index rose to 60.1 in February from 59.1 in January. It was forecast to fall to 59. The score was above the neutral 50 threshold for the twenty-second straight month.
Copyright RTT News/dpa-AFX