ROME: European stocks fell Tuesday, moving toward a straight second loss, as ratings downgrades put pressure on some luxury-goods shares.
Investors were also assessing some disappointing economic updates from major eurozone countries.
The Stoxx Europe 600 SXXP, -1.13% dropped 0.8% to 377.17. No sectors traded higher. The index fell 0.4% on Monday, weighed down by commodity shares, which struggled as prices for metals and oil traded lower.
The oil and gas SXEP, -0.62% sector was again in the red Tuesday, although oil prices CLF6, +1.01% advanced more than 1%, to above $42 a barrel. Portuguese oil producer Galp Energia SGPS GALP, -1.07% and France’s Total SA FP, -0.61% each lost 0.9%.
Meanwhile, shares of Burberry Group PLC BRBY, -3.58% declined 1.8% and Hugo Boss AG BOSS, -3.84% fell 0.9% after Nomura downgraded the makers of high-end clothing and accessories. Burberry was cut to neutral from buy, and Hugo Boss was cut to reduce from neutral.
Swatch Group UHR, -1.66% was also downgraded at Nomura, to neutral from buy. The Swiss watch maker’s shares fell 1.2%.
The closely watched Ifo business confidence survey from Germany is due at 9 a.m. London time, or 4 a.m. Eastern Time. Investors will watch for any impact from the Volkswagen emissions scandal and the recent terror attack in Paris that left 129 people dead.
Earlier Tuesday, German government data showed third-quarter ross domestic product eased to 0.3% from 0.4% in the second quarter.
Separately, French business confidence slipped in November, with respondents from the manufacturing industry became more cautious about their production outlook.
