The majority of the European markets ended Tuesday's session to the downside. Several markets returned to active trading today, following yesterday's holiday. Banks and automakers, which were among the top performing stocks yesterday, were weak Tuesday due to profit taking. Investors were also cautious ahead of tomorrow's events. They will be watching for clues as to when the Federal Reserve will begin to taper off its stimulus program.
The Federal Open Market Committee is scheduled to release the minutes from its most recent meeting Wednesday and Fed Chairman Ben Bernanke will testify before the Joint Economic Committee of Congress. St. Louis Federal Reserve Bank President James Bullard is also due to begin speaking on monetary policy as the European markets close today.
Germany's economic activity is likely to improve markedly in the second quarter, the Bundesbank said in its monthly report on Tuesday.
Bundesbank sees "catch-up effects" in the construction sector. In addition, the central bank expects noticeable increase in industrial new orders to underpin exports and investment.
Nonetheless, the bank said there remains significant macroeconomic risks from euro area crisis.
The Euro Stoxx 50 index of eurozone bluechip stocks declined by 0.35 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.18 percent.
The DAX of Germany gained 0.19 percent and the CAC 40 of France rose by 0.33 percent. The SMI of Switzerland advanced by 0.46 percent and the FTSE 100 of the U.K. climbed by 0.71 percent.
In Frankfurt, Commerzbank and Deutsche Bank declined by 3.73 percent and 2.28 percent, respectively. JPMorgan downgraded Deutsche Bank to ''Neutral'' from ''Overweight.''
Volkswagen dropped by 1.29 percent. Daimler and BMW decreased by 1.43 percent and 0.26 percent respectively.
Citigroup downgraded Merck KgaA to its ''Least Preferred Stock'' list. The stock fell by 0.25 percent.
Continental rose by 0.60 percent, after UBS downgraded the stock to its ''European Automobiles Least Preferred List.''
In Paris, Societe Generale fell by 0.48 percent and Credit Agricole lost 1.44 percent.
In London, Marks & Spencer climbed by 6.22 percent. The retailer said current trading is in line with expectations.
Burberry Group advanced by 5.33 percent, after reporting full year results.
Capita surged by 5.90 percent, after it was chosen by O2 for a 10-year contract.
Miners turned in a solid performance Tuesday. Rio Tinto increased by 2.60 percent and Randgold Resources added 5.00 percent. Antofagasta advanced by 4.10 percent and Glencore Xstrata rose by 3.30 percent.
Vodafone, which announced financial results, finished up by 1.16 percent.
Carnival plunged by 5.93 percent, after the cruise operator lowered its full-year earnings outlook, primarily due to lower net revenue yield expectations.
G4S, which announced a new chief executive, finished up by 0.36 percent.
Sonova, which reported lower annual profit, dropped by 1.05 percent in Zurich.
Germany's producer price inflation slowed for the third consecutive month in April, data released by the Federal Statistical Office revealed Tuesday.
Producer prices rose only 0.1 percent in April from a year ago, following a 0.4 percent increase in March. This was the lowest annual rate since March 2010. Economists had forecast an increase of 0.2 percent for April.
France's leading economic index strengthened throughout the first quarter, suggesting that economic activity may begin improving in the near term, the Conference Board said Tuesday. The leading index rose 0.5 percent each in March and February. During the six-month span through March, the index gained 1.1 percent, as four of the seven components increased, it said.
U.K. consumer price inflation slowed more-than-expected to a seven-month low in April on falling petrol and air fares, official data revealed Tuesday. The slowdown provides relief for consumers as it raises purchasing power, while it gives more scope for the central bank to ease monetary policy.
Annual inflation fell to 2.4 percent from 2.8 percent in March, the Office for National Statistics said. Inflation was expected to ease to 2.6 percent.
Output prices inflation in British factory sector eased more than expected in April, data from the Office for National Statistics showed Tuesday. Output prices of goods produced by British manufacturers increased 1.1 percent year-on-year in April, slower than a 1.9 percent gain in March. Economists expected a 1.4 percent rise.
House price inflation in the UK increased more than forecast in March, a report from the Office for National Statistics showed Tuesday. The ONS house price index rose 2.7 percent year-on-year in March, faster than a 1.9 percent gain in February. Economists expected the rate of inflation to edge up to 2 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.