The European markets ended Tuesday's session firmly in negative territory. Europe took a cue from the strong declines in Asia, after the Bank of Japan failed to expand stimulus measures and upgraded its view of the economy. Investor sentiment was also impacted by the political turmoil in Turkey where anti-government protests strengthened. There was no help to be found in the afternoon, as markets in the U.S. also traded in the red. Mining stocks were among the weakest performers, due to the drop in metal prices.
The Bank of Japan on Tuesday decided to retain its target of doubling the monetary base in two years, but stopped short of announcing any new steps to curb bond market volatility. Meanwhile, the central bank upgraded its view of the economy.
The BoJ said its money market operations will continue to target an expansion of monetary base at an annual pace of JPY 60-70 trillion, as announced in April. The decision to keep the easing plan intact was unanimous.
The policy board of the Bank of Japan discussed the extension of fund-supplying operations from the current one year, but assessed that there is no immediate need at this stage, Governor Haruhiko Kuroda told a news conference on Tuesday.
The success of the bond-purchase program of the European Central Bank will have no impact on the ruling whether the measure was constitutional or not, the German Constitutional Court said on Tuesday.
Germany's highest court in Karlsruhe is holding a two-day hearing to decide whether the ECB's bond buying program called the Outright Monetary Transactions (OMT) violates the German law.
The Euro Stoxx 50 index of eurozone bluechip stocks declined by 1.22 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.99 percent.
The DAX of Germany dropped by 1.03 percent and the CAC 40 of France fell by 1.39 percent. The FTSE 100 of the U.K. decreased by 0.94 percent and the SMI of Switzerland lost 1.51 percent.
In Frankfurt, Infineon Technologies increased by 3.36 percent. Citigroup upgraded the stock to ''Buy'' from ''Neutral.''
Deutsche Bank fell by 2.04 percent and Commerzbank lost 1.70 percent.
Gerry Weber gained 1.72 percent, after Berenberg upgraded the stock to ''Buy'' from ''Hold.''
Legrand declined by 4.14 percent in Paris, following share sale by investment firm Wendel.
Societe Generale fell by 1.75 percent and BNP Paribas lost 1.86 percent. Credit Agricole dropped by 0.93 percent.
Remy Cointreau decreased by 0.38 percent, despite reporting higher annual profit.
In London, ICAP declined by 3.56 percent. Credit Suisse downgraded its rating on the stock to "Underperform" from "Neutral."
Compass Group fell by 2.05 percent, after Goldman Sachs downgraded the stock to "Neutral" from "Buy."
Mining stocks turned in a weak performance Tuesday, due to the decline in metal prices. Anglo American declined by 3.59 percent and BHP Billiton lost 1.58 percent. Fresnillo dropped by 3.76 percent and Glencore Xstrata fell by 3.88 percent. Rio Tinto decreased by 1.37 percent and Vedanta Resources finished down by 1.73 percent.
Dialight, which issued a profit warning, sank by 13.68 percent.
Oxford Instruments, which reported lower annual profit, dropped by 7.28 percent.
U.K. industrial production recoded moderate growth in April, contradicting market expectations for stagnation, as strong performance by the mining sector more than offset a contraction in the manufacturing sector.
Data added to hopes that the gradual recovery that started in the first quarter is gaining momentum. Production rose for the third consecutive month, while factory output fell for the first time in three months.
Industrial production moved up 0.1 percent sequentially in April after gaining 0.7 percent in March, the Office for National Statistics said Tuesday. Economists had forecast neither growth nor decline.
A gauge of house prices in the UK rose to its highest level in three years in May, suggesting that government's policies to revive the property market have started to pay off, results of a survey by the Royal Institute of Chartered Surveyors (RICS) showed Tuesday. The RICS house price balance rose to 5 in May from 1 in April. This was the highest reading since June 2010.
Wholesale inventories in the U.S. rose in line with economist estimates in the month of April, according to a report released by the Commerce Department on Tuesday. The report said wholesale inventories edged up by 0.2 percent in April following a revised 0.3 percent increase in March. The modest growth matched economist estimates.
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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.