European stocks slipped lower Tuesday, with investors locking in some profits on the back of an uncertain economic outlook and with more corporate earnings to digest.
At 03:05 ET (08:05 GMT), the DAX index in Germany dropped 1.4%, the CAC 40 in France slipped 1.4% and the FTSE 100 in the U.K. fell 0.7%.
Investors bank gains Global stock indices, from New York to Tokyo, have rallied to fresh record highs this year, and European markets have also benefited greatly, with the three main indices also posting new peaks.
The DAX has gained over 20% so far this year, the FTSE 100 over 18%, while political turmoil in France has seen the CAC 40 relatively underperform, gaining just under 10% year-to-date.
However, the economic climate remains uncertain and growth within the eurozone has been hard to find, prompting investors to bank some of these gains.
Data released on Monday showed that eurozone manufacturing activity stagnated in October, as the final Manufacturing Purchasing Managers’ Index for the region registered 50.0 in October, exactly at the threshold separating growth from contraction.
Performance varied significantly across the region. Greece and Spain recorded the strongest improvements, with respective PMI readings of 53.5 and 52.1. In contrast, Germany and France - the bloc’s largest economies - remained in contraction territory at 49.6 and 48.8 respectively.
Additionally, further help in the form of easier monetary policy is starting to look more unlikely.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. The European Central Bank kept interest rates unchanged last week, for the third consecutive meeting, and many expect the central bank to maintain rates at current levels at its final policy-setting meeting of the year in December.
BP in spotlight There are more quarterly numbers in Europe for investors to digest Tuesday, as the earnings season continues.
BP (LON:BP) posted a third-quarter underlying replacement cost profit, or adjusted net income, of $2.21 billion, ahead of expectations, and the oil major maintained its quarterly share buyback at $750 million, adding it expects asset disposals to total about $5 billion this year.
Associated British Foods (LON:ABF), the owner of fashion retailer Primark and brands including Twinings and Ovaltine, reported lower annual profit, and announced a review that could lead to separating its retail and food businesses.
Hugo Boss (ETR:BOSSn) said sales and operating profit in the current year would be at the lower end of its guidance and the German fashion house reported lower-than-expected third quarter sales.
Philips (AS:PHG) raised the upper end of its full-year margin forecast after the Dutch health technology company reported stronger third-quarter results marked by rising orders, steady sales growth, and expanded profitability.
Domino’s Pizza (LON:DOM) reported a rise in third-quarter like-for-like sales, as higher prices, new products and loyalty initiatives helped sustain demand in a challenging consumer environment.
Norwegian industrial investment company Aker ASA (OL:AKER) reported a robust third quarter marked by growth in net asset value and strong investment activity across artificial intelligence and real estate segments.
