The broad-based major European indices closed lower in Tuesday trading as automotive and bank stocks weighed down the markets.
In economic news, the European court of justice's (ECJ) Advocate General Campos Sanchez-Bordona said he believed EU law allowed a country to leave the EU without requiring the formal agreement of the European commission or other EU member states.
Sanchez-Bordon said that withdrawal from an international treaty, which is the reverse of a treaty-making power, is by definition a unilateral act of a state party and a manifestation of its sovereignty.
Bank of England Governor, Mark Carney has warned British Parliament that food prices could rise between 5% and 10% if the UK leaves the EU without a deal. Carney said prices would rise by 10% in the most "extreme" case, and by 6% in a more favorable scenario.
Eurostat, the statistical office of the European Union, reported that industrial producer prices rose 0.8% in the euro area (EA19) and 0.7% in the EU28 in October, compared with September. Compared with October 2017, industrial producer prices rose by 4.9% in the euro area and by 5.4% in the EU28.
The highest monthly increases in industrial producer prices were in Belgium (+3.6%), Italy (+1.8%), Romania (+1.6%) and Slovakia (+1.3%), while decreases were reported in Estonia (-0.8%), Latvia (-0.6%), Slovenia (-0.2%) and Cyprus (-0.1%). The highest annual increases in industrial producer prices were recorded in Belgium (+10.4%), Denmark (+9.9%), Hungary (+8.4%) and the UK (+7.7%), while the only decrease was seen in Ireland (-2.7%).
In the UK, November data indicated a solid expansion of UK construction output, which was supported by a broad-based upturn in the three sub-categories of activity monitored by IHS Markit. Although the rate of job creation was the fastest since December 2015, business confidence remained relatively low, with Brexit-related concerns weighing down growth projections for the next 12 months.
"November data indicates that the UK construction sector remains in expansion mode, with resilient business activity trends seen for housing, commercial and civil engineering activity," said Tim Moore, economics associate director at IHS Markit. "The latest overall rise in construction output was the fastest since July, helped by a stronger contribution to growth from house building activity."
In Germany, turnover achieved by wholesale trade in Q3 2018 was in real terms 0.8% and in nominal terms 4.1% larger than that in Q3 2017, according to the Federal Statistical Office (Destatis). In September, turnover in wholesale trade was in real terms 2.0% smaller and in nominal terms 1.2% higher than in the same month of the previous year. The turnover in wholesale trade increased by 1.0% in the first nine months in real terms and by 3.4% in nominal terms compared to the same period the previous year.
In equities, online gambling company GVC Holdings, and aerospace company BAE Systems led the FTSE lower in London, falling 6.2% and 5.5% respectively, followed by packaging company Smurfit Kappa Group, and media company ITV, which dropped 5.1% and 4.8%. Packaging company DS Smith, and travel company TUI each closed 4.6% lower, while turnaround firm Melrose Industries lost 4.5%.
In Frankfurt, automotive stocks helped weigh down the DAX as tire maker Continental fell 4.7%, while automakers Volkswagen, Daimler, and BMW lost 3%, 2.9%, and 1.6% respectively. Airline operator Lufthansa led all decliners shedding 6.2%, while adhesives manufacturer Covestro, and construction materials supplier Heidelberg Cement were off 4.5% and 4%. Deutsche Bank, and postal services provider Deutsche Post dropped 3.2% and 2.7%.
In Paris, banks burdened the CAC as Credit Agricole and BNP Paribas fell 2.2%, while Societe Generale lost 2.1%. Auto parts supplier Valeo, and software firm Dassault Systemes led the decliners, moving 4.9% and 3.8% lower respectively, followed by public relations firm Publicis Groupe, semiconductor company STMicroelectronics, and IT company Atos, which were off 2.9%, 2.8%, and 2.4% respectively.
The FTSE lost 0.56%, the DAX fell 1.14%, and the CAC-40 dropped 0.82%.
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