European Markets Dropped After Chinese Exports Plunged

(RTTNews) - The European markets ended Tuesday's session firmly in negative territory, extending the losses of the previous session. Disappointing Chinese trade data sparked concerns over slowing global growth and triggered a sharp sell-off in mining stocks. A pullback in crude oil prices also contributed to Tuesday's weakness. Crude prices rose to their highest level since the start of 2016 yesterday.

The European markets got off to a weak start Tuesday, picking up on the weak cues from Asian. Markets in Europe briefly flirted with positive territory ahead of the opening of the U.S. equity markets, but quickly slipped back into the red as the U.S. markets pulled back.

Investors are also awaiting the announcement from the European Central Bank meeting on Thursday.

China's exports plunged in February, largely reflecting the shift in the timing of Chinese New Year, official data revealed Tuesday.

Exports tumbled 25.4 percent year-on-year in February, the biggest fall since May 2009, the General Administration of Customs reported today. Economists had forecast a 15 percent drop after the 11.2 percent drop in January.

At the same time, imports logged an annual fall of 13.8 percent, bigger than the 10.2 percent decrease expected by economists. The Bank of England will not tell people how to vote in the EU referendum in June, Governor Mark Carney said Tuesday.

The bank will conduct analysis but it should not be considered as recommendations for or against Brexit, he told Treasury Committee.

It will be important for the BoE to retain the flexibility and overall supervisory coherence necessary to meet its financial stability objectives, Carney wrote in a letter to Andrew Tyrie, chairman of Treasury Select Committee.

The Euro Stoxx 50 index of eurozone bluechip stocks decreased 0.63 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.77 percent.

The DAX of Germany dropped 0.88 percent and the CAC 40 of France fell 0.86 percent. The FTSE 100 of the U.K. declined 0.92 percent and the SMI of Switzerland finished lower by 0.60 percent.

In Frankfurt, RWE decreased 4.52 percent after suspending dividend and announcing a radical restructuring of its British unit Npower. Peer E.ON also dropped 2.84 percent.

Shares of Dialog Semiconductor tumbled 3.44 percent as the manufacturer of semiconductor-based system solutions reported a 29 percent decline in fourth-quarter net income.

Volkswagen declined 4.01 percent and Daimler lost 3.08 percent. BMW also finished lower by 2.14 percent.

Deutsche Bank weakened by 2.11 percent and Commerzbank surrendered 1.59 percent.

In Paris, Renault decreased 4.34 percent and Peugeot dropped 3.39 percent. Car parts maker Valeo also fell 2.18 percent.

Technip sank 3.58 percent and Total lost 1.80 percent.

In London, Burberry Group climbed 6.64 percent on reports that the company has asked its advisers at Robey Warshaw to help fend off a potential takeover bid.

Weak trade data from China weighed heavily on mining stocks. Glencore sank 18.16 percent and Anglo American tumbled 15.48 percent. Antofagasta dropped 9.45 percent and Rio Tinto fell 9.43 percent. BHP Billiton declined 8.51 percent and Fresnillo surrendered 3.63 percent.

The Eurozone economy grew as estimated in the fourth quarter, data from Eurostat showed Tuesday. Gross domestic product climbed 0.3 percent sequentially, in line with the estimate published on February 12. The economy had logged a similar 0.3 percent expansion in the third quarter.

Germany's industrial production recovered at the fastest pace in more than six years in January, as mild weather boosted construction activity. Industrial output grew 3.3 percent on a monthly basis in January, reversing a revised 0.3 percent fall in December, data from Destatis revealed Tuesday.

The growth was the fastest since September 2009, when output climbed 3.6 percent. Economists had forecast only a 0.5 percent rise for January.

The French trade deficit widened less than expected in January, figures from customs office showed Tuesday. The trade shortfall increased to EUR 3.71 billion from EUR 3.68 billion in December. The deficit was forecast to rise to EUR 4.1 billion.

Like-for-like sales in the United Kingdom added just 0.1 percent on year in February, the British Retail Consortium said on Tuesday. That missed forecasts for an increase of 0.5 percent following the 2.6 percent increase in January.