European stock markets experienced a downturn on Tuesday, primarily led by a decline in mining stocks. This was prompted by recent data indicating a slowdown in China's export growth for November and an unexpected contraction in its imports, raising concerns about the economic health of the world's second-largest economy.
Attention is now directed towards upcoming U.S. Consumer Price Index (CPI) figures as well as the European Central Bank (ECB) policy meeting. On Thursday, the ECB is anticipated to announce a 25 basis points interest rate cut, marking the third consecutive reduction.
The pan-European STOXX 600 index fell by 0.3 percent to 519.59, breaking an eight-session streak of gains. Germany's DAX decreased by 0.1 percent, France's CAC 40 dropped by 0.6 percent, and the U.K.'s FTSE 100 saw a decline of 0.5 percent.
Notably, mining companies such as Anglo American, Antofagasta, and Glencore experienced declines of 2 to 3 percent. Luxury brands with significant exposure to China, including LVMH, Kering, and Hermes International, also saw their shares fall by 1 to 2 percent in Paris.
Ashtead's shares plummeted by nearly 11 percent following the company's announcement of its intent to shift its stock market listing from London to New York. Conversely, FirstGroup saw a 4 percent increase after agreeing to acquire RATP London from RATP Developpement, valuing the enterprise at 90 million pounds ($114.8 million).
Centrica, the parent company of British Gas, saw a 2.3 percent drop in its share price after it added an additional £300 million to its existing share buyback scheme. Delivery Hero SE, a German food delivery company, tumbled 8 percent as its Middle Eastern subsidiary, Talabat, began trading in Dubai.
TeamViewer's shares fell by 9 percent following its agreement to acquire the London-based IT firm 1E for $720 million. However, Volkswagen's stock rose by 1.4 percent amid reports that talks with union representatives will continue next week.
In economic news, Germany's consumer price inflation reached a four-month peak in November, attributed to less favorable energy base effects, as reported by Destatis. The annual increase in the consumer price index was 2.2 percent in November, up from 2.0 percent in October, aligning with the estimate released on November 28. Inflation, measured by the harmonized index of consumer prices, remained steady at 2.4 percent, consistent with October's figure and the initial estimate.
