This is CNBC's live blog covering European markets.
European stock markets closed lower Tuesday as investors remained cautious over the outlook for the global economy, particularly following recent data from China.
The benchmark Stoxx 600 index ended the day 0.6% lower, with most sectors negative. Autos led losses, down 1.4%, while utilities rose 0.7%.
German chemicals firm Lanxess extended earlier losses to drop 15.4% after announcing it would miss profit forecasts for the year, pulling the DAX index lower.
| TICKER | COMPANY | PRICE | CHANGE | %CHANGE |
|---|---|---|---|---|
| .FTSE | FTSE 100 | 8,433.76 | +52.41 | +0.63% |
| .GDAXI | DAX | 18,772.85 | UNCH | UNCH |
| .FCHI | CAC 40 Index | 8,219.14 | UNCH | UNCH |
| .FTMIB | FTSE MIB | 34,657.35 | +318.03 | +0.93% |
| .IBEX | IBEX 35 Idx | 11,105.50 | UNCH | UNCH |
Investors will be monitoring the U.K. this week, with inflation data due Wednesday and a monetary policy announcement Thursday. A 25 basis point hike is widely expected after the European Central Bank hiked and the Federal Reserve paused last week.
Sunil Krishnan, head of multi-asset funds at Aviva Investors, said people are underestimating the current rally in European stocks, which came off a low more than eight months ago.
"In that time, I think investors have really struggled to build any love for the rally. The concerns have moved seamlessly from one thing to the next, firstly it was about rates moving too quickly, then we moved on to the banking crisis and a potential credit crunch, and then back to interest rates," Krishnan told CNBC's "Squawk Box Europe."
Asia-Pacific markets traded mixed Tuesday as investors digested China's central bank decision to cut its one-year and five-year loan prime rate by less than expected.
U.S. stocks fell, meanwhile, as Wall Street struggled to carry over the positive momentum from last week.
Shares of German plastics and chemicals maker Covestro soared as much as 15% in afternoon trading as rumors circulated of a takeover offer by Abu Dhabi National Oil Company, as reported by Reuters.
Covestro has a market value of around $8.6 billion, according to Refinitiv data.
ADNOC did not immediately respond to CNBC's request for comment. Covestro declined to comment when contacted by CNBC.
— Hannah Ward-Glenton
U.S. stocks opened lower Tuesday to kick off a holiday-shortened week. Markets were closed Monday due to the Juneteenth holiday.
The Dow Jones Industrial Average fell by 180 points, or by 0.53%. The S&P 500 declined 0.35%, while the Nasdaq Composite was lower by 0.16%.
— Sarah Min
German producer prices rose 1% year-on-year in May, logging the slowest rate since January 2021, official statistics data showed.
The hike follows a 4.1% annual increase in April. Prices in May were 1.4% lower than the prior month.
— Jenni Reid
U.K. grocery price inflation hit its lowest level this year at 16.5% in the four weeks to June 11, research company Kantar said Tuesday, down from the 17.2% rate observed in the four weeks to 14 May.
"Prices rising at 16.5% isn't something to celebrate and it's still the sixth highest monthly figure in the past 15 years," Kantar said, while forecasting further falls in the coming months.
The company found that "nearly 70% of households are either "extremely" or "very worried" about food and drink inflation, up from just over two-thirds in January.
Official U.K. inflation figures are due out Wednesday.
Sales of discounted supermarket retailer Aldi rose to a new record market share of 10.2% in the 12 weeks to June 11, with rival Lidl taking 7.7% of the market in the period, Kantar found.
— Ruxandra Iordache
Markus Krebber, CEO of German energy company RWE, discusses how much progress has been made in the renewable energy push.
German chemicals company Lanxess fell 17% in morning trade, pulling down the blue chip DAX index, after it issued profit warnings for the second quarter and full year.
The Cologne-based company hit an almost 14-year low after it said it was experiencing "very weak" demand and an ongoing hit from customers reducing stock.
"The demand recovery we originally expected in the second half is not yet visible – neither in China nor in other meaningful end markets," CEO Matthias Zachert said in a statement.
"This impacts us especially in Germany: Here we are massively impacted by the disadvantageous conditions such as the high energy prices and massive bureaucracy. In times of weak demand Germany as an industrial location is just not competitive."
— Jenni Reid
European stock markets fell in early trade, with the Stoxx 600 index down 0.4%.
Germany's DAX declined 0.53%, with France's CAC 40 down 0.2% and the U.K.'s FTSE 100 0.14% lower.
— Jenni Reid
Niall O'Sullivan, chief investment of multi-asset strategies EMEA at Neuberger Berman, discusses the upcoming Bank of England rate decision and the housing market, among other things.
China has cut its key one-year and five-year loan prime rates by 10 basis points each, the first cut since August.
The one-year LPR stands at 3.55%, down from 3.65%, while the five-year LPR was reduced to 4.20% from 4.30%. The moves mirror cuts that China made last week to its short-term and medium-term loan rates.
After the announcement, the offshore yuan weakened 0.13% to trade at 7.172 against the greenback.
— Lim Hui Jie
A global auto giant may be the next company to sign a deal with Tesla to use its supercharger stations, according to RBC analyst Tom Narayan.
If the agreement comes to pass, the deal will be in the wake of similar partnerships Tesla has agreed with Ford and General Motors.
Investors have rewarded all parties to the deal in the past. The day following the agreement, Tesla and Ford's shares popped by 4.7% and 6.2%, respectively. Both automakers' stock prices have rallied by more than 25% since.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Outperforming portfolio manager Jordan Cvetanovski has looked for certain attributes in the companies he picked in the past nearly 20 years.
And the results have proven to be consistent throughout the global financial crisis, the era of zero interest rates — and now, high interest rates.
One fund that Cvetanovski of Pella Funds Management managed beat its benchmark by a whopping 27% in a four-year period.
CNBC Pro subscribers can read more here.
— Weizhen Tan
European markets are expected to open higher Thursday.
The U.K.'s FTSE 100 index is expected to open 32 points higher at 8,365, Germany's DAX up 25 points at 18,510, France's CAC 7 points higher at 8,143 and Italy's FTSE MIB up 59 points at 33,908, according to data from IG.
Earnings are due from Ferrovial, Telefonica, EDP, Enel, Pirelli and Salvatore Ferragamo.
— Holly Ellyatt