By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- Stocks in Europe dropped Tuesday, with
the major benchmark hitting intraday lows after a key sentiment
survey from Germany underscored fears about slowing growth in
Europe's largest economy.
The closely watched ZEW economic sentiment indicator sank into
negative territory for the first time since November 2012, falling
to negative 3.6 in October, compared with 6.9 points in
September.
"Geopolitical tensions and the weak economic development in some
parts of the eurozone, which is falling short of previous
expectations, are a source of persistent uncertainty," said ZEW
President Clemens Fuest in a statement on Tuesday.
The ZEW indicator of economic sentiment in the eurozone declined
as well, down 10.1 points to 4.1.
Markets: The Stoxx 600 fell 0.8% at 318.92, heading toward its
sixth-straight loss in the row. The euro (EURUSD) fell to $1.2664,
down from $1.2688 ahead of the ZEW release. Late Monday, the euro
bought $1.2691.
Germany's DAX 40 also fell further after the ZEW figures, giving
up 0.8%.
Investors earlier Tuesday received a report that Spanish
consumer prices fell at a slower pace in September than in August,
with core inflation dipping into negative territory for the first
time in more than four years. Spain's IBEX 35 index fell by
0.9%.
The FTSE 100 index was also under pressure after government data
showed a unexpectedly sharp decline in U.K. inflation in September.
The benchmark fell 0.7%.
Among movers in European trade, shares of Michael Page
International PLC fell 9.7%, leading losses on the Stoxx 600, after
the recruitment services provider cut its operating forecast for
the full year.
Daimler AG shares were up 1.9% after the Germany auto maker
posted higher earnings and free cash flow in its industrial
business in the third quarter.
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