BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - The majority of the European markets ended Tuesday's session in the red. The markets fluctuated between small gains and losses throughout the session. Investors were in a nervous mood due to the rising tensions between the United States and North Korea. However, traders were encouraged by some activity on the M&A front.
North Korea successfully tested a hydrogen bomb over the weekend, which has put traders in a nervous mood. President Donald Trump condemned the nuclear test, saying North Korea's words and actions continue to be very hostile and dangerous to the U.S. Trump said the U.S. is considering stopping all trade with any country doing business with North Korea in response to the test.
The pan-European Stoxx Europe 600 index weakened by 0.08 percent. The Euro Stoxx 50 index of eurozone blue chip stocks decreased 0.28 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.15 percent.
The DAX of Germany climbed 0.18 percent, but the CAC 40 of France fell 0.34 percent. The FTSE 100 of the U.K. declined 0.52 percent, but the SMI of Switzerland finished higher by 0.06 percent.
In Frankfurt, Volkswagen rallied 1.29 percent on reports that it has put the 1.5 billion-euro ($1.8 billion) sale of Ducati motorcycles on hold temporarily.
Merck KGaA jumped 2.32 percent after announcing that it is preparing strategic options for its consumer health business, including a potential full or partial sale of the business as well as strategic partnerships.
In London, TalkTalk Telecom rose 0.84 percent. The Financial Times said the company is exploring an exit from its mobile operations.
Aveva Group soared 25.73 percent after the engineering software firm agreed to a takeover offer from France's Schneider Electric. Shares of Schneider Electric rose 0.26 percent in Paris.
Reckitt Benckiser Group fell 2.72 percent after the company confirmed that four of its senior executives are leaving.
Admiral Group weakened by 1.51 percent after Berenberg downgraded its rating on the stock to 'Sell' from 'Hold.'
Eurozone retail sales declined in July due to a fall in food sales, data from Eurostat showed Tuesday. Retail sales volume decreased 0.3 percent month-on-month in July, partially offsetting June's 0.6 percent increase. The pace of decline matched economists' expectations.
Eurozone private sector logged steady growth in August, final data from IHS Markit showed Tuesday. The composite output index came in at 55.7 in August, matching July's reading but down slightly from the flash estimate of 55.8.
The British service sector expanded at the slowest pace in almost a year in August as subdued client demand and heightened uncertainty about the domestic economic outlook weighed on business activity.
The services Purchasing Managers' Index fell more-than-expected to 53.2 in August from 53.8 in July, survey data from IHS Markit and the Chartered Institute of Procurement & Supply showed Tuesday. The expected reading was 53.5.
Like-for-like sales in the United Kingdom climbed 1.3 percent on year in August, the British Retail Consortium said on Tuesday, accelerating from the 0.9 percent increase in July. Food sales remained firm, advancing an annual 3.2 percent, slowing from 3.4 percent in the previous month.
China's private sector expanded at the strongest pace in six months in August underpinned by increased activity at both manufacturers and services providers. The Caixin composite output index rose to 52.4 in August from 51.9 in July, survey data from IHS Markit showed Tuesday. A score above 50 indicates expansion in the sector.
After reporting a substantial increase in new orders for U.S. manufactured goods in the previous month, the Commerce Department released a report on Tuesday showing a sharp pullback in factory orders in the month of July.
The Commerce Department said factory orders plunged by 3.3 percent in July after surging up by an upwardly revised 3.2 percent in June. Economists had expected orders to tumble by 3.2 percent compared to the 3.0 percent jump originally reported for the previous month.
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