Europe markets: earnings, Covid-19, extreme weather
LONDON — European markets fell on Tuesday as investors continued to monitor corporate earnings, along with extreme weather and the spread of Covid-19 across the continent.
The pan-European Stoxx 600 dropped 0.9% in early trade, with basic resources shedding 1.7% to lead losses as all sectors and major bourses slid into negative territory.
Monday saw wildfires rage in regions across southern Europe as hot weather and powerful winds took hold. Meanwhile, the north of the continent continued a cleanup operation after days of torrential rain and flooding, following deadly floods in Germany and surrounding countries last week.
Earnings continue to hold the spotlight for European investors, with Dassault Systemes, Moncler, Telecom Italia, Campari, Randstad, Reckitt Benckiser and FirstGroup among those reporting Tuesday.
French luxury goods giant LVMH reported a surge in second-quarter sales after the bell on Monday, as coronavirus restrictions eased the pressure on retail outlets around the world.
In the UK., Bank of England policymaker Gerhan Vlieghe said the central bank should avoid downscaling its monetary stimulus program for at least several quarters, amid what the BOE sees as a temporary spike in inflation and the lingering threat of Covid-19.
Shares in Asia-Pacific were mixed on Tuesday as Chinese tech stocks listed in Hong Kong remained under pressure following a tumble on Monday. The Hang Seng index fell by more than 2% while mainland Chinese markets also declined.
Stateside, focus this week is on the impending policy meeting of the U.S. Federal Reserve for clues on the outlook for monetary stimulus, along with a host of corporate earnings from major players. Apple, Google parent Alphabet, Microsoft and Starbucks are all due to report on Tuesday. Stock futures were flat in early premarket trade as Wall Street awaited the deluge of mega-cap tech earnings.
The IMF releases its latest World Economic Outlook at 2 p.m. London time on Tuesday. There are no major data releases expected out of Europe.
Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.