European stocks open lower and markets await data

At the start of trading on Tuesday, European stocks faced a downturn, echoing the performance of Asian stocks, as investors remained cautious amidst pledges from China that failed to bolster market sentiment. This cautious sentiment prevailed ahead of the release of key economic data from both the euro zone and the United States.

The European STOXX 600 index declined by 0.2 percent as of 0810 GMT, retracing slightly from its recent record highs reached on Monday.

Leading the sectoral losses were basic resource stocks, which fell by 1.1 percent, largely impacted by the decline in metal prices. Concerns arose amid a strengthening dollar and dashed hopes for new stimulus measures in China.

In corporate news, Sandoz shares dropped by three percent following the announcement by the Swiss manufacturer of biosimilars and non-branded drugs that its chief financial officer would be stepping down from his position.

On a positive note, French shares of Thales surged by 5.4 percent after the company reported a significant increase in operating profits for 2023, along with higher sales figures, supported by the recovery in the civil aviation market.

Investors are eagerly awaiting the release of purchasing managers’ index (PMI) readings for February from the euro zone, Germany, France, and the United States later in the day. Additionally, producer price data for January in the euro zone is also on investors’ radar as they seek indicators regarding the trajectory of the interest rate cycle.