The German market is notably lower in afternoon trading Tuesday, as fears about the spread of the sovereign debt crisis continued to haunt markets in the region. Sentiment was impacted by weak cues from Asia/Pacific and the lower U.S. index futures.
The Euro Stoxx 50 index of eurozone bluechip stocks is declining 1.38 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is retreating 1.20 percent.
The DAX index opened lower at 7,112 and has been trading below the flat line. The index is currently declining 2.15 percent.
Commerzbank is leading the decliners by falling 5.5 percent. Deutsche Bank is losing 4.7 percent.
Carmaker Volkswagen is declining 3.2 percent. BMW and Daimler are receding 2.6 percent and 1.8 percent, respectively.
HeidelbergCement is declining 2.6 percent. JPMorgan raised its rating on the stock to "Overweight" from "Neutral," but reduced the price target to 56.60 euros from 63.90 euros.
Henkel is losing 1.5 percent, even after Nomura raised its price target on the detergent maker to 55 euros from 50.50 euros.
Outside the main index, Vossloh is falling about one percent. Unicredit cut its rating on the stock to "Hold" from "Buy" and reduced the price target to 89 euros from 105 euros.
Elsewhere in Europe, the French CAC 40 is retreating 2.31 percent and the UK's FTSE 100 is declining 1.52 percent. Switzerland's SMI is dropping 1.59 percent.
In economic news, Germany's statistical office on Tuesday confirmed inflation figures for June. EU harmonized inflation remained steady at 2.4 percent in June. Consumer price inflation remained above the two-percent threshold for the fifth consecutive month, the Federal Statistical Office said in its final report.
Meanwhile, EU harmonized inflation in France rose slightly in June, Insee said. The Harmonized Index of Consumer Prices registered an annual increase of 2.3 percent, slightly bigger than last month's 2.2 percent rise. Economists were expecting the rate to remain unchanged at 2.2 percent.
British annual inflation slowed unexpectedly in June, but stayed well above the 2 percent target, figures published by the Office for National Statistics revealed. Consumer prices rose 4.2 percent year-on-year in June. Economists were expecting the annual increase to stay steady at 4.5 percent in June.
Across Asia/Pacific, major markets ended notably lower. Australia's All Ordinaries lost 1.8 percent, China's Shanghai Composite Index retreated 1.72 percent, Hong Kong's Hang Seng plunged 3.1 percent and Japan's Nikkei 225 declined 1.43 percent.
In the U.S., futures point to a lower open on Wall Street. In the previous session, the Dow closed down 1.2 percent, the Nasdaq fell 2 percent and the S&P 500 dropped 1.8 percent.
In the commodity space, crude for August delivery is falling $0.74 to $94.41 per barrel, while August gold is sliding $4.1 to $1545.1 a troy ounce.
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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.