European Markets Edge Lower as China Trade Concerns and U.S. Inflation Data Take Center Stage

European stock markets opened in the red on Tuesday as weak trade data from China dampened the momentum created by recent stimulus pledges. Investors are now turning their attention to upcoming U.S. inflation data, which could influence monetary policy decisions.

Market Performance

• STOXX 600 index fell 0.2% to 520.02 by 0810 GMT.
• UK’s FTSE 100 declined 0.5%, leading losses among European indices.
• Germany’s DAX was down 0.2%, with flat inflation figures of 2.4% in November confirming earlier estimates.

Sectoral Highlights

• Basic resources stocks led declines following weak Chinese trade data, signaling softening demand.
• Healthcare and automobiles showed modest gains, rising 0.4% and 0.2%, respectively.

Key Stock Movers

1. Delivery Hero:
   • Shares plummeted 8.6%, the worst performer in the STOXX 600.
   • The drop followed the listing of its Middle East subsidiary, Talabat, on the Dubai Stock Exchange in what became the largest global tech IPO of 2024.
2. Ashtead:
   • The UK equipment rental firm’s stock tumbled 7.7%.
   • The decline came after announcing a shift of its primary listing to the U.S., its largest market, and revising its annual profit outlook below prior expectations.

Looking Ahead

Investors are bracing for U.S. inflation data, set to release on Wednesday. A significant reading could solidify expectations for a Federal Reserve rate cut at its December 18 meeting, adding further direction to global markets.

Weakening demand from China remains a concern for Europe’s resource-heavy sectors, while company-specific news continues to drive volatility in individual stocks.