VIENNA
(dpa-AFX) - The European markets ended Tuesday's session firmly in negative territory. The markets got off to a weak start due to falling crude oil prices and the disappointing performance of the Asian markets.
The mood among investors soured further after the release of some weaker than expected economic data.
Germany's
factory orders came in with an unexpected decline, while Euro area private sector data was revised lower.
Global recovery is continuing but it remains too slow and fragile and the risks to its sustainability are rising, International Monetary Fund Managing Director Christine Lagarde said Tuesday.
"The recovery remains too slow, too fragile, and risks to its durability are increasing," Lagarde said in a speech in
Frankfurt
.
The persistent low growth can self-reinforce itself through negative effects on potential output that can be hard to reverse, she warned. The risk of becoming trapped in the so-called "new mediocre" has increased, the IMF Chief added.
"We are on alert, not alarm. There has been a loss of growth momentum," Lagarde said.
"However, if policymakers can confront the challenges, and act together, the positive effects on global confidence-and the global economy-will be substantial."
The Euro Stoxx 50 index of eurozone bluechip stocks decreased 2.43 percent, while the Stoxx Europe 50 index, which includes some major
U.K.
companies, lost 1.82 percent.
The DAX of
Germany
dropped 2.63 percent and the CAC 40 of
France
fell 2.18 percent. The
FTSE 100 of the
U.K.
declined 1.19 percent and the SMI of
Switzerland
finished lower by 0.75 percent.
In
Frankfurt
,
ThyssenKrupp dropped 4.33 percent. Brazilian metals and mining company
Vale S.A. said that it would sell its total stake of 26.87 percent in
Companhia Siderurgica do Atlântico to
ThyssenKrupp as part of its initiatives to streamline its asset portfolio.
Deutsche Bank decreased 4.70 percent and Commerzbank lost 3.66 percent.
Volkswagen declined 3.78 percent and BMW weakened by 3.53 percent. Daimler also finished lower by 3.32 percent.
In
Paris
, Peugeot sank 6.51 percent. The car maker has announced a new "Push to Pass" business plan that will see it deliver 10 percent revenue growth by 2018 compared to 2015.
Renault surrendered 4.89 percent and car parts maker Valeo also dropped 4.80 percent.
French telecom stocks extended Monday's slump. Bouygues tumbled 3.93 and Orange fell 2.35 percent.
Societe Generale decreased 4.29 percent and Credit Agricole tumbled 3.79 percent. BNP Paribas also closed down by 2.07 percent.
In
London
, Tesco declined 1.70 percent after Deutsche Bank downgraded its rating on the stock to "Hold" from "Buy."
Mining stocks turned in a weak performance Tuesday. Glencore sank 5.31 percent and BHP Billiton tumbled 4.57 percent. Anglo American dropped 3.98 percent and Antofagasta fell 2.59 percent.
Eurozone retail sales grew at a slightly slower pace in February as non-food trade dropped for the first time in three months, Eurostat reported Tuesday.
Retail sales climbed 0.2 percent month-on-month in February following a revised 0.3 percent rise in January. Economists had forecast sales to remain flat after January's initially estimated 0.4 percent expansion.
The euro area private sector activity expanded less than initially estimated in March mainly due to the revisions in
France
and
Italy
, final data from
Markit revealed Tuesday. The final composite output index rose slightly to 53.1 in March from 53.0 in February and the below the flash score of 53.7.
Germany's
composite PMI came in at 54.0 in March, down from 54.1 in February. This was the lowest score in eight months. According to flash estimate, the index held steady at 54.1 in March.
French output stabilized following February's decline. The final composite PMI fell to 50.0 from 49.3 in February. It was well below the flash estimate of 51.1.
Germany's
factory orders decreased unexpectedly in February on falling foreign demand, especially from the euro area, reflecting that sluggish global trade weighed on industrial activity.
Data from Destatis showed that new orders in manufacturing fell a seasonally adjusted 1.2 percent month-over-month in February, confounding economists' expectations for a 0.4 percent climb. This was the biggest fall in six months.
British service sector growth accelerated at a slower-than-expected pace in March, though slightly. Survey figures from Markit Economics showed Tuesday. The Chartered Institute of Procurement & Supply/Markit services Purchasing Managers' Index rose to 53.7 in March from 52.7 in the previous month. Economists had expected the index to rise to 53.8.
With imports rising at a faster rate than exports, the Commerce Department released a report on Tuesday showing that the
U.S.
trade deficit widened more than expected in the month of February. The
Commerce Department said the trade deficit widened to
$47.1 billion in February from a revised
$45.9 billion in January.
Economists had expected the deficit to widen to $46.2 billion from the $45.7 billion originally reported for the previous month.
Growth in the
U.S.
service sector accelerated slightly more than expected in the month of March, according to a report released by the
Institute for Supply Management on Tuesday. The ISM said its non-manufacturing index climbed to 54.5 in March from 53.4 in February, with a reading above 50 indicating growth in the service sector. Economists had expected the index to inch up to 54.0.
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