The European markets are modest to moderately higher on Tuesday, even as growth concerns weighed on investor sentiment. The surprise drop in U.S. manufacturing data released overnight also discouraged investors from being firmly bullish amid worries about the fiscal cliff.
Producer price inflation in the euro area slowed less than economists expected in October, data released by statistical office Eurostat showed. Producer price inflation eased to 2.6 percent in October from 2.7 percent each in September and August. Economists had forecast a faster slowdown to 2.5 percent.
The UK's construction sector activity contracted unexpectedly in November, a survey by Markit Economics and the Chartered Institute of Purchasing & Supply (CIPS) revealed. The headline Purchasing Managers' Index for the construction sector fell to 49.3 in November from 50.9 in the previous month. This is the lowest level of the index since August.
The Euro Stoxx 50 index of eurozone bluechip stocks is adding 0.62 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is gaining 0.36 percent.
The German DAX is up 0.3 percent and the French CAC 40 is gaining 0.7 percent. The UK's FTSE 100 is advancing 0.1 percent and Switzerland's SMI is adding 0.4 percent.
In Frankfurt, Deutsche Bank is advancing 1.9 percent. Commerzbank is gaining 0.8 percent.
BMW and Daimler are in positive territory while Volkswagen is losing moderately.
OC Oerlikon is gaining 2.4 percent. The company lifted its full year outlook and announced sale of units.
Henkel is falling 2.2 percent after Credit Suisse reduced the stock to ''Underperform'' from ''Neutral.''
Morgan Stanley cut Fresenius to ''Equalweight'' from ''Overweight.'' The stock is losing 1.5 percent.
United Internet is plunging 7.5 percent as Warburg Pincus LLC has reportedly offered to sell its 5.5 percent holding.
In Paris, EADS is gaining 2.6 percent, extending the gains of the previous session when the Airbus maker said talks are on to change its shareholding structure.
Credit Agricole and Societe Generale are advancing 2.4 percent and 1.9 percent, respectively. BNP Paribas is gaining 1.5 percent.
EDF, Renault and Carrefour are losing notably.
Neopost is declining 5.3 percent. The company cut its full year revenue and operating margin forecast.
In London, TUI Travel is climbing around 3 percent. The tour operator reported a higher profit for fiscal 2012, even as revenues were slightly down for the period. Further, the company said it is well positioned to continue to deliver long-term sustainable growth.
Plumbing and heating products distributor Wolseley reported higher trading profit and revenue for the first quarter, amid strong performance in the U.S., even as challenging conditions continued in Continental Europe. The stock is moderately higher.
Rio Tinto is gaining 0.9 percent. Credit Suisse raised the stock to ''European Focus List.''
Iberdrola is up 0.8 percent in Madrid. The electric utility was downgraded at UBS.
Elekta, which announced second-quarter results, is surging 7.2 percent in Stockholm.
Across Asia/Pacific, markets closed mixed after poor U.S. manufacturing data. Australia's All Ordinaries dropped 0.6 percent and Japan's Nikkei 225 fell 0.3 percent. However, China's Shanghai Composite Index advanced 0.8 percent and Hong Kong's Hang Seng gained 0.2 percent.
In the U.S., futures point to a slightly higher open on Wall Street. In the previous session, stocks closed lower, partly due to the release of a disappointing report on U.S. manufacturing activity. The Dow dipped 0.5 percent, the Nasdaq edged down 0.3 percent and the S&P 500 fell 0.5 percent.
In the commodity space, crude for January delivery is losing $0.19 to $88.90 per barrel and December gold is dropping $13.5 to $1707.6 a troy ounce.
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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.