European Shares Decline As China Holds Off On Fiscal Stimulus

(RTTNews) - European stocks dropped to two-week lows on Tuesday as Middle East worries persisted and China's state planner announced no new plans for major stimulus.

Traders ignored positive data that showed German industrial production expanded more than expected in August after falling in the previous month.

Data from Destatis revealed that German industrial output grew 2.9 percent on month in August, reversing a revised 2.9 percent decline in July. Economists had expected a 0.8 percent rebound for the month.

On a yearly basis, industrial production logged a 2.7 percent drop, slower than the 5.6 percent decrease in July.

The pan European STOXX 600 fell 0.7 percent to 515.64 after edging up 0.2 percent on Monday.

The German DAX dipped half a percent, France's CAC 40 shed nearly 1 percent and the U.K.'s FTSE 100 was down 1.2 percent.

Miners suffered heavy losses, tracking lower copper and iron ore prices as initial optimism over top consumer China's stimulus measures faded. Anglo American, Antofagasta and Glencore lost 4-6 percent.

China-linked luxury brands such as Kering, LVMH and Hermes International tumbled 3-7 percent in Paris.

Spirits maker Remy Cointreau plummeted 9.3 percent and Pernod Ricard lost 4.3 percent as China imposed temporary anti-dumping measures on brandy imports from the European Union.

British engineering firm and aerospace parts maker Senior plummeted 13 percent after a profit warning due to challenges in the aerospace market.

Vistry plunged 28 percent after the homebuilder slashed its fiscal 2024 profit outlook.

Imperial Brands rallied 3.5 percent after the maker of Winston cigarettes reported trading in line with expectations for fiscal 2024.

Deutz AG, a German internal combustion engine maker, edged up slightly after saying that as part of its cost-cutting measures due to the "difficult economic situation", it is considering job cuts.

Nordex SE, a wind turbine maker, advanced 2.4 percent after saying it has received orders from Canada for 74 N163 turbines with 500 MW capacity from an undisclosed party.