Investing.com - European stocks extended losses on Tuesday, after data showed that output in the euro zone’s private sector grew at the slowest rate so far this year in September, adding to fears over the outlook for the recovery in the region.
During European afternoon trade, the DJ Euro Stoxx 50 plummeted 1.56%, France’s CAC 40 lost 1.94%, while Germany’s DAX tumbled 1.39%.
Research group Markit reported that the euro zone composite output index, which measures the combined output of both the manufacturing and service sectors slumped to a nine month low of 52.3 from 52.5 in August.
The bloc’s services PMI slid to a three month low of 52.8 from 53.1 last month, while the manufacturing index ticked down to a 14-month low of 50.5 from 50.7.
The data came a day after European Central Bank President Mario Draghi warned that economic activity in the euro area has slowed and there's a risk of a further downturn.
Financial stocks pushed sharply lower, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) plunged 2.03% and 2.18%, while Germany's Deutsche Bank (XETRA:DBKGn) lost 1.95%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) plummeted 1.83% and 1.88% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) declined 1.17% and 1.29%.
Elsewhere, Michelin (PARIS:MICP) dove 3.60% after the tiremaker said that its 2014 target for 3% growth in sales volume has become harder to reach in the current market conditions.
Rexel (PARIS:RXL) added to losses, down 3.84% after Ray Investment sold 20.9 million shares of the French electrical supplies distributor for €15.35 each.
In London, FTSE 100 retreated 1.45%, as U.K. lenders tracked their European counterparts sharply lower.
Shares in the Royal Bank of Scotland (LONDON:RBS) slipped 0.22% and HSBC Holdings (LONDON:HSBA) dropped 0.90%, while Barclays (LONDON:BARC) and Lloyds Banking (LONDON:LLOY) tumbled 1.28% and 1.64% respectively.
Tesco (LONDON:TSCO) also remained on the downside, with shares losing 3.89% after the supermarket chain said Alan Stewart will join the board as chief financial officer on Tuesday.
The company's stock dove 12% on Monday when it announced the suspension of four executives after discovering that profit estimates had been overstated by £250 million for the first half of the year.
Meanwhile, mining stocks pushed higher. Shares in Bhp Billiton (LONDON:BLT) climbed 0.58% and Rio Tinto (LONDON:RIO) jumped 0.98%, while rivals Fresnillo (LONDON:FRES) and Randgold Resources (LONDON:RRS) rallied 1.64% and 1.62%.
In the U.S., equity markets pointed to a lower open. The Dow 30 futures pointed to a 0.29% fall, S&P 500 futures signaled a 0.34% loss, while the NASDAQ 100 futures indicated a 0.40% decline.