European bourses tracked lower midday Tuesday on Asia equity-market cues and on fears that the Trump Administration's trade policies might impede European exports. While European tech stocks outperformed global trends, sectors such as property, food, and banks struggled. Investors remained attentive to Wall Street futures signaling red, alongside notably lower closes overnight on Asian exchanges.
Germany's economic sentiment indicator logged at 7.4 in November, a decline from 13.1 in October, as reported by the Centre for European Economic Research (ZEW). The pan-continental Stoxx Europe 600 Index saw a drop of 1% mid-session. The Stoxx Europe 600 Technology Index rose by 0.6%, but the Stoxx 600 Banks Index faced a 1% loss.
Additionally, the Stoxx Europe 600 Oil and Gas Index decreased by 0.6%, while the Stoxx 600 Europe Food and Beverage Index fell by 0.9%. The REITE, a European REIT index, encountered a 1% decline, and the Stoxx Europe 600 Retail Index dropped by 0.8%. On national market indexes, Germany's DAX was down 0.9%, the FTSE 100 in London fell 1%, the CAC 40 in Paris was off 1.2%, and Spain's IBEX 35 lost 0.8%.
Yields on benchmark 10-year German bonds moved lower, hovering around 2.30%. Front-month North Sea Brent crude oil futures advanced by 0.8% to $72.40 per barrel. The Euro Stoxx 50 volatility index increased by 1.2% to 26.99, yet still indicated below-average volatility for European stock markets in the next 30 days, a positive signal.
A reading above 20 signifies potential market turbulence ahead, while below 20 suggests a calmer trading environment..