European shares fell on Tuesday as investors grapple with geopolitical uncertainty and a cut in global interest rates, while a strong outlook for German company SAP boosted technology shares and helped cushion some losses.
The pan-European STOXX 600 index closed 0.21% lower at 520.40 points, paring early losses that had seen the index hit a two-week low.
Rising German bond yields also put pressure on stocks, with the utilities sector leading sector declines.
The STOXX has hit record highs several times this year, but has retreated further from that mark as investors priced in stagnant economic growth and weak Chinese demand.
The International Monetary Fund has predicted that Germany will see zero growth this year, which will weigh on the broader euro zone’s performance.
Key future factors to watch include the November US election, doubts over the pace of interest rate cuts by the Federal Reserve, and continued geopolitical tensions, which have strengthened the dollar and gold due to of their safe haven positions.
However, SAP shares rose 2.1%, lifting the broader technology sector 0.9%, after the software company raised its full-year targets based on the strength of its cloud business in the third quarter.
IN LONDON the Financial Times index fell by 0.14%, to 8,306.54 points.
IN FRANKFURT the DAX index fell by 0.20%, to 19,421.91 points.
IN PARIS, the CAC-40 index lost 0.01%, to 7,535.10 points.
IN MILAN the Ftse/Mib index collapses by 0.64%, to 34,733.52 points.
In MADRID, the Ibex-35 index recorded a decline of 0.07%, to 11,832.70 points.
In LISBON the PSI20 index fell by 1.12%, to 6,554.76 points.
Source: Terra
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