European stock markets dropped at the open on Tuesday after a solid start to the week, with traders’ focusing on the outlook for China’s economy and US interest rate hikes.
London’s benchmark FTSE 100 index fell 0.4 percent to 7,693.30 points. In the eurozone, Frankfurt’s DAX index shed 0.4 percent to 14,741.22 points and the Paris CAC 40 lost 0.4 percent to 6,880.72, reports BSS.
Markets were experiencing “a mild bout of profit taking after recent gains”, noted Richard Hunter, head of markets at Interactive Investor.
“The price of oil and most base metals also saw some profit taking after recent strength, based on the possibility of weaker consumption as the Chinese economy attempts to find its feet once more.”