Investing.com – European stock markets slipped lower Tuesday as investors digested fresh regional employment and inflation data as well as quarterly earnings from some major companies.
At 03:10 ET (08:10 GMT), the DAX index in Germany traded 0.9% lower, the CAC 40 in France fell 1% and the FTSE 100 in the U.K. dropped 0.4%.
German inflation rose in October
Investors will return to scrutinizing fresh economic data this week, after the political turmoil of last week, starting with an inflation reading from Germany and UK employment data, released earlier Tuesday.
German inflation, harmonized to compare with other European Union countries, rose to 2.4% in October, confirming preliminary data, after having risen by 1.8% year-on-year in September.
While the European Central Bank policy makers wouldn't want to see inflation in the eurozone’s largest economy rise above their 2% target price once more, this is unlikely to stop the easing of monetary policy once more into the year-end.
The UK unemployment rate increased by more than expected in September, data showed Tuesday, rising to 4.3% in the three months to September, from 4.0% in the three months to August.
Signs of a cooling labor market come after Britain's economy grew in August following two consecutive months of stagnation, and after the Bank of England cut interest rates, for the second time this year, last week.
There are more economic numbers to digest later in the week, including US inflation and UK gross domestic product on Thursday.
Global politics in state of flux
Still, sentiment remains on edge, with investors wary of the ramifications of President-elect Donald Trump’s return to the White House, particularly given his proposed policy of tariffs, potentially resulting in a trade war.
Additionally, the German government remains in a state of paralysis, with Chancellor Olaf Scholz expected to shortly call a vote of confidence in parliament, a move that would pave the way for snap elections following the collapse of his three-way governing coalition.
Bayer cuts full-year guidance
In the corporate sector, Bayer (OTC:BAYRY) stock slumped 8% after the German conglomerate lowered its full-year operating earnings guidance, citing weaker agricultural markets in Latin America.
Infineon (OTC:IFNNY) stock rose 1% despite the German chipmaker saying it expected "subdued" performance in 2025, citing weak demand in its end markets.
AstraZeneca (NASDAQ:AZN) stock rose 1% after the UK drugmaker lifted its 2024 revenue and profit forecasts after a strong third quarter, helped by strong demand for its cancer treatments.
Shell (LON:SHEL) stock edged higher after the energy giant won an appeal in the Dutch courts to dismiss a landmark climate ruling against it was ordered to drastically reduce its global carbon emissions back in 2021.
Crude prices slip lower
Oil prices steadied after recent weakness Tuesday following disappointment over the latest stimulus plan from top importer China.
By 03:10 ET, the Brent contract climbed 0.1% to $71.92 per barrel, while U.S. crude futures (WTI) traded 0.1% higher at $68.12 per barrel.
Both contracts had fallen by more than 5% over the previous two trading sessions.
China unveiled a 10-trillion-yuan ($1.4-trillion) debt package on Friday to ease local government financing strains, but the measure is expected to provide little direct support to the economy.
In the US, tropical storm Rafael was seen largely dissipating in the Gulf of Mexico, soothing any fears of supply disruptions in the region.
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