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Europe open: Risk aversion sends Stoxx 600 to two-week low

Tue 14 October 2025 07:44 | A A A

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(Sharecast News) - European stocks fell to a two-week low on Tuesday, declining for the third time in four days, with heavy steep declines in Germany and Milan weighing heavily on the Stoxx 600.

The pan-European benchmark was trading 0.7% lower at 562.41 - a level it has not closed below since 30 September - with drops of 1.1% and 1.2% recorded on the DAX and FTSE MIB respectively.

"There is a whiff of risk aversion about financial markets today, and as we progress through October it is as if the global stock market uptrend is facing a little more resistance on the upside," said Kathleen Brooks, research director at XTB.

Industrials, financials and tech stocks were the worst performing sectors in early deals, which "suggests that investors in European stocks are concerned about economic growth, and that is hindering a resumption in the stock market uptrend", Brooks said.

In economic news, German inflation was confirmed at a nine-month high in September, with final estimates on Tuesday showing an increase in price pressures in line with the flash reading. The harmonised consumer price index increased at a year-on-year rate of 2.4% in September, according to the Federal Statistical Office, up from 2.2% in August and 2.0% in June and July.

Still to come is the ZEW economic sentiment survey for the eurozone due out at 1100 CEST.

Michelin disappoints

French tyre giant Michelin was extending losses made on Monday after slashing its full-year guidance for operating income to just 2.6bn-3.0bn, down from a previous forecast of more than 3.4bn, citing the impact of US tariffs and weak trade in North America. Deutsche Bank said the reduction was "far bigger than expected".

The news also dampened sector peers Pirelli and Continental on Tuesday.

Meanwhile, banking stocks were also mostly weaker, with Italian groups Banco BPM, Mediobanca, BPER Banca and BMPS were among the worst performers, joined by Germany's Deutsche Bank and France's BNP Paribas and the UK's TBC Bank.

London's mining stocks were also falling sharply, including Anglo American, Antofagasta and Glencore.

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