European stocks may drift lower on Tuesday, mirroring weak Asian cues and lower commodity prices as a surprise drop in U.S. manufacturing activity in November offset easing fears over a Greek bankruptcy and Spain's troubled banks.
Meanwhile, Euro group Chairman Jean-Claude Juncker has called on Cyprus and its creditors to reach an agreement on the terms of the proposed bailout "in a timely manner," while offering to discuss the matter with Eurozone finance ministers as early as next week. Juncker also confirmed that Spain will receive EUR 39.5 billion from the euro area bailout fund to recapitalize its banks by next week.
The Euro group is widely expected to approve the EUR 44 billion worth of loan tranche to the country at next week's meeting. However, Greece has to successfully complete its debt buyback program before December 13, in order to receive the aid.
In economic releases, retail sales in the U.K. saw only a modest improvement in November as shoppers opted to wait for more bargains in the run-up to Christmas, a survey by the British Retail Consortium revealed. Retail sales values rose 0.4 percent on a like-for-like basis in November compared to a year earlier. On a total basis, sales were up 1.8 percent.
In corporate news, Porsche Cars North America Inc., the U.S. distributor of Porsche cars and a unit of Porsche AG, reported November 2012 U.S. sales of 3,865 vehicles, up 71 percent from 2,255 vehicles sold last November.
The BMW Group in the U.S. reported November 2012 sales of 36,461 vehicles, an increase of 38.8 percent from the 26,271 vehicles sold in the same month a year ago.
Dutch consumer electronics giant Koninklijke Philips Electronics NV said that it has raised restructuring charges projection by about 27 percent for the fourth quarter.
Belgium-based biopharmaceutical and specialty chemical firm UCB SA announced research evaluating safety and efficacy of VIMPAT (lacosamide) C-V in adults with partial-onset seizures, and in other special populations.
European stocks posted modest gains on Monday in the wake of positive Chinese manufacturing data and amid news that Spain has officially requested an EU bailout for four of its struggling banks. Also, in a bid to reduce its debt burden, Greece has offered to buy back as much as 10 billion Euros of its debt.
The Euro Stoxx 50 index of Eurozone bluechip stocks rose 0.3 percent and the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.1 percent. Around Europe, the U.K.'s FTSE 100 edged up marginally, while key benchmark indexes in France, Switzerland and Germany rose between 0.3 percent and 0.4 percent.
U.S. stocks failed to sustain an early upward move overnight, as concerns over the U.S. fiscal cliff came to the fore again and data showed U.S. manufacturing activity fell to a three-year low in November. A separate report from the Commerce Department showing a bigger than expected increase in U.S. construction spending in October helped to limit the downside for the markets. The Dow and the S&P 500 slid about half a percent each, while the tech-heavy Nasdaq slipped 0.3 percent.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.