German stocks lead losses in Europe

German stocks led losses among European bourses on Tuesday, with speciality chemicals Lanxess falling after the company cut its forecasts, and a modest rate cut in China failed to lift investor sentiment.

Germany’s DAX fell 0.3% by 0750 GMT, further away from Friday’s record high. The pan-European Stoxx 600 index fell 0.1 percent.

Lanxess shares plunged 15.4 percent to their lowest in more than three years after the German company cut its core profit forecasts for the second quarter and the full year, saying it did not expect demand to pick up in June as customers continued to draw down inventories.

The chemicals sector index fell 1.7 to top the sectoral losses.

China cut its main lending rates on Tuesday, and investors are worried that the cut may be too modest to spur a slow economic recovery and are waiting for a broader stimulus package.

While Sanofi stocks boosted healthcare shares, up 2.5 percent.