Investing.com - European stocks moved lower in midday trade on Tuesday as German economic sentiment collapsed to a four-year low in June and markets waited on expectations for the International Monetary Fund (IMF) to cut global growth forecasts later in the session.
During European morning trade, the Euro Stoxx 50 fell 1.19%, France’s CAC 40 traded down 0.92%, while Germany’s DAX 30 lost 1.24%.
German economic sentiment deteriorated to the lowest level since November 2012 in July, as the Brexit shock hit business confidence, industry data showed on Tuesday.
In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment plunged by 26.0 points to -6.8 this month from June’s reading of 19.2.
Analysts had expected the index to drop by 10.2 points to 9.0 in July.
At 13:00GMT, or 9:00AM ET, the IMF will update its global growth outlook with forecasts expected to be cut in light of the uncertainty caused by the U.K.’s decision to leave the European Union.
Investors also digested a large number of earnings reports from the Old Continent.
Dutch paint and coating company Azko Nobel tumbed 6% after reporting a 6% drop in revenue.
Swiss pharmaceutical company Novartis traded down 0.9% after reporting core operating income that was roughly in line with forecasts.
On the upside, Berlin-based online clothing retailer Zalando soared more than 20% after reporting a 25% revenue increase in the second quarter and raising its full-year guidance.
Meanwhile, oil prices added to overnight losses in European trade on Tuesday, falling back towards the lowest level in two months amid ongoing concerns over a global supply glut.
European energy stocks were broadly lower, as French oil and gas major Total SA (PA:TOTF) fell 0.83% and Italy’s ENI (MI:ENI) traded down 1.58%, while Norwegian rival Statoil (OL:STL) lost 0.79%.
Financial stocks added to losses, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) traded down 1.13% and 2.28%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) shed 1.34% and 2.36%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) slumped 2.48% and 3.87% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) fell 0.85% and 1.42%.
In London, commodity-heavy FTSE 100 slipped 0.36%, after inflation data showed a slightly larger than expected increase in June.
Commodity stocks put downward pressure on the British benchmark index. Shares in Glencore (LON:GLEN) tumbled 4.24% and Anglo American (LON:AAL) sank 3.94%, while BHP Billiton (LON:BLT) and Rio Tinto (LON:RIO) traded down 3.43% and 4.11% respectively.
Energy stocks generally added to losses, as BP (LON:BP) shed 0.74% though rival Royal Dutch Shell (LON:RDSa) bucked the trend with gains of 2.02%.
Financial stocks were also on the downside, with shares in HSBC Holdings (LON:HSBA) down 0.33% and the Royal Bank of Scotland (LON:RBS) off 0.61%, while Barclays (LON:BARC) and Lloyds Banking (LON:LLOY) sank 1.25% and 1.46% respectively.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.15% dip, S&P 500 futures a 0.28% retreat, while the Nasdaq 100 futures indicated a 0.25% drop.