Europe's most important stock market closed on Tuesday after the sell-off of Chinese stocks and sparked losses in global markets. As expected, the European Commission called on the Italian Government to revise its budget, which raised some concern.
Bad corporate results from a number of companies also weighed on sentiment.
How did markets work?
The Stoxx Europe 600
slipped 1.6% to 354.06, after a loss of 0.4% on Monday.
Germany's DAX 30
fell 2.2% to 11,274.28, while France's CAC 40
fell 1.7% to 4,967.69. The UK's FTSE 100
fell 1.2% to 6,955.21.
Italy's FTSE MIB Italy Index
dropped 0.9% to 18.802,47
EURUSD, + 0.1047%
was stable at 1.1488, compared with 1.1467 late Monday, while the pound
GBPUSD, + 0.2237%
jumped from $ 1.2966 to $ 1.3003.
What drove the markets?
Europe stocks were stuck in the grip of a global defeat that drove nervous investors to putative harbors. like the Japanese yen
GCZ8, + 0.94%
China started the action on Tuesday as the Shanghai Composite Index
gave up a two-day rally, losing 2.3% and tapping stocks across the region as the government's efforts to boost the market have failed.
On Wall Street, US stocks traded sharply lower.
Necessity to Know: China's stock sell-off could cause much more chaos before it's over: Merrill Lynch
Geopolitical tensions have also crept into the psyche of traders after the Turkish president claimed The murder of journalist Jamal Khashoggi was planned by the Saudi Arabian government.
In the immediate vicinity, the European Commission has rejected the Italian budget proposal, although this step was largely expected.
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What did strategists say?
Fawad Razaqzada, market analyst at Forex.com, said if global equity weakness continues, US stocks could be the next big domino to outperform the rest of the world. Thus, they might have some catching up to do on the bottom.
"In the event that the bulls reappear, then the German DAX, which was hit hardest by the European indices (partly because of worries about Italy and fears about the demand for German luxury cars from China) – could be the one looking for potential outperformance, "he said in a message to clients.
Shares of ams AG
sank 26%, the top sinker for the Stoxx Europe 600, after the Austrian chipmaker warned of its fourth quarter late Monday and looked grim in 2019.
was another big loser as the French information technology company lowered its revenue forecast for 2018.
slipped 9.5% after a California judge upheld the verdict of a jury that linked the company's Roundup weed killers to the cancer Damage reduced by $ 200 million.
Schindler Holding AG
slid 9% after the Swiss elevator manufacturer failed to meet expectations for the third quarter.
On the top stocks of Travis Perkins PLC
TPK, + 4.08%
rose 4.1% after the construction equipment company posted a revenue increase.
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