ROME: European stocks slid Tuesday, coming under pressure after disappointing data on factory activity in China and in parts of the eurozone.
The Stoxx Europe 600 SXXP, -2.73% fell 2.7% to close at 352.89, with no sectors in positive territory. The losses for the pan-European benchmark come after its 8.5% skid in August, the biggest drop for the month since 2011.
Equities opened lower on Tuesday after downbeat Chinese manufacturing data underscored worries that the world’s second-largest economy will miss its 7% growth target for the year. The Caixin manufacturing purchasing managers index fell to its lowest point in more than six years in August, while the official manufacturing gauge showed activity in the month slipped to a three-year low.
China is a key market for mining companies and luxury-goods makers. Shares of metal producer Anglo American PLC AAL, -7.64% plummeted 7.6%, and Rio Tinto PLC RIO, -4.90% RIO, -6.54% RIO, -0.32% slumped 4.9%. Meanwhile, Britain’s Burberry Group PLC BRBY, -4.96% BURBY, -5.77% lost 5%, and France’s Christian Dior SE CDI, -3.17% fell 3.2%.
U.S. stocks were slammed as well Tuesday, with the Dow Jones Industrial Average DJIA, -2.84% down more than 300 points, or 2%.
For stock markets to be begin stabilizing, investors will in part need to hear “a consistent narrative” from the U.S. Federal Reserve, said Michael Hewson, chief market analyst at CMC Markets.
