The European markets were stuck in a sideways pattern throughout Tuesday's session, with the majority ending the day in negative territory. Traders were in a negative mood after the German business sentiment index unexpectedly dropped. Investors were also feeling cautious ahead of today's vote in the House on the Republican tax reform bill.
Investors remain optimistic that the House will vote to approve the U.S. tax reform bill later today. A vote in the Senate is expected to follow closely thereafter.
The pan-European Stoxx Europe 600 index weakened by 0.45 percent. The Euro Stoxx 50 index of eurozone bluechip stocks decreased 0.75 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.66 percent.
The DAX of Germany dropped 0.72 percent and the CAC 40 of France fell 0.70 percent. The FTSE 100 of the U.K. gained 0.09 percent, but the SMI of Switzerland finished lower by 0.56 percent.
In Frankfurt, Hugo Boss rose 0.93 percent after its CEO Mark Langer told the Frankfurter Allgemeine Zeitung newspaper that the company's sales growth will outperform the market in 2018.
Deutsche Lufthansa advanced 1.40 percent after announcing plans to launch revenue-based loyalty programs.
Dialog Semiconductor surged 8.30 percent after Chinese company Tsinghua Unigroup increased its stake in the company to 9 percent.
In Paris, Sodexo gained 1.74 percent after the company announced a partnership with India's largest food ordering and delivery platform Swiggy.
In London, Hostelworld Group fell 2.28 percent after its Chief Financial Officer Mari Hurley decided to resign to pursue a new opportunity outside the company.
Old Mutual climbed 2.67 percent. The Anglo-South African financial services group is selling its U.K. wealth business run by veteran fund manager Richard Buxton to a private equity firm for 600 million pounds.
Intrum Justitia sank 7.54 percent in Stockholm amid reports its CEO is leaving the company.
Eurozone hourly labor cost grew at a slower pace in the third quarter, data from Eurostat showed Tuesday. Hourly labor cost increased 1.6 percent year-on-year in the third quarter, slower than the 1.8 percent growth logged a quarter ago.
Eurozone construction output declined for the first time in seven months in October, figures from Eurostat showed Tuesday. Construction output declined a seasonally adjusted 0.4 percent month-over-month in October, reversing a 0.1 percent rise in September.
Germany business sentiment weakened unexpectedly in December, from a record high, on less optimistic business expectations, survey data from the Ifo Institute showed Tuesday.
The business sentiment index fell to 117.2 in December from revised 117.6 a month ago, according to a monthly survey conducted among 7,000 firms by the Munich-based institute. Economists had forecast the indicator to rise to 117.6 from November's original estimate of 117.5.
New residential construction in the U.S. unexpectedly increased in the month of November, according to a report released by the Commerce Department on Tuesday. The report said housing starts jumped 3.3 percent to an annual rate of 1.297 million in November from a revised 1.256 million in October. Economists had expected housing starts to drop by 3.7 percent.
Building permits fell by 1.4 percent to an annual rate of 1.298 million from 1.316 million in the previous month.
by RTT Staff Writer
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