BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - The European markets ended Tuesday's session firmly in the red. A number of factors weighed on investor sentiment, including Brexit concerns and worries over the trade tensions between the U.S. and China. Concerns over the Italian budget also rattled the markets.
Prime Minister Giuseppe Conte reaffirmed his country's commitment to the Euro after an Italian lawmaker said that the country would resolve its problems by returning to its own currency.
'I'm totally convinced that Italy would resolve most of its problems with its own currency,' Claudio Borghi, the economic head of the ruling League party, told RAI radio.
'Having control of one's own means in monetary policy is a necessary condition - although not sufficient - to carry out the ambitious and enormous project of renewal.'
The pan-European Stoxx Europe 600 index weakened by 0.51 percent. The Euro Stoxx 50 index of eurozone bluechip stocks decreased 0.72 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.37 percent.
The DAX of Germany dropped 0.42 percent and the CAC of France fell 0.71 percent. The FTSE 100 of the U.K. declined 0.28 percent and the SMI of Switzerland finished lower by 0.44 percent.
In Frankfurt, Siemens declined 2.85 percent after a downgrade from HSBC.
In London, Ferguson sank 6.75 percent. The heating and plumbing products supplier has warned of challenging market conditions in the U.K. after reporting better-than-expected full-year trading profit and revenue.
Royal Mail plunged 8.10 percent to extend losses after slashing its profit guidance for this year.
Home appliance manufacturer Electrolux rose 1 percent in Stockholm after it acquired SPM Drink Systems, an Italian manufacturer of professional dispensers of frozen and hot beverages and soft ice-cream.
Intesa Sanpaolo, UniCredit and Banco BPM fell between 0.5 and 2 percent in Milan after anti-euro rhetoric from a senior official from Italy's ruling party sparked a sell-off in the country's sovereign bonds.
Euro area producer price inflation slowed for the first time in four months during August, preliminary data from the statistical office Eurostat showed on Tuesday.
Industrial producer prices on the domestic market rose 4.2 percent year-on-year following 4.3 percent in July, which was revised from 4 percent. Economists had expected a 3.80 percent increase. Inflation eased for the first time since April.
UK construction sector unexpectedly grew at the weakest pace in six months in September, as all three sub-sectors lost momentum, survey data from IHS Markit showed on Tuesday. The IHS Markit/CIPS UK construction purchasing managers' index fell to 52.1 from 52.9 in August. In contrast, economists had expected the index to rise to 53.1.
UK house prices logged steady growth in September, data from Nationwide Building Society showed Tuesday. House prices grew 2 percent year-on-year in September, the same rate as seen in August. Prices were expected to climb 1.9 percent.
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