The European markets ended Tuesday's session in negative territory. Disappointing Chinese trade data weighed on investor sentiment. The weak data brought concerns over the slowdown in the world's second largest economy back into focus. Commodity driven sectors like mining, gold and energy stocks were under pressure.
Weak economic data from the Eurozone also contributed to the negative mood. Germany's economic confidence dropped to a one-year low in October, while U.K. inflation turned negative again in September.
China's exports declined at a moderate pace in September as the devaluation of yuan helped it from falling sharply amid weak global demand. At the same time, imports plunged due to a drop in commodity prices and subdued domestic demand.
Exports slid 3.7 percent in September from a year ago, the General Administration of Customs reported Tuesday. Economists had forecast it to drop at a faster pace of 6 percent following August's 5.5 percent decrease.
Meanwhile, imports logged a sharp 20.4 percent contraction after falling 13.8 percent a month ago. This was the eleventh straight annual decline in imports. Imports were expected to decline 16 percent.
The trade surplus totaled $60.34 billion, but bigger than a $48.2 billion surplus expected by economists.
The Euro Stoxx 50 index of eurozone bluechip stocks decreased 0.80 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.86 percent.
The DAX of Germany dropped 0.86 percent and the CAC 40 of France fell 0.97 percent. The FTSE of the U.K. declined 0.45 percent and the SMI of Switzerland finished lower by 0.59 percent.
In Frankfurt, SAP climbed 5.35 percent. The business software maker reported higher operating profit for the third quarter, on its strength in mature markets.
Volkswagen fell 1.40 percent, after it announced that investments are to be reduced by some one billion euros per year.
Cable company Leoni plunged 33.54 percent after it announced that it expects to miss its earnings target for the year.
RWE dropped 5.75 percent and E.ON weakened by 4.70 percent.
In Paris, LVMH tumbled 3.15 percent and Kering fell 3.04 percent.
In London, Royal Mail declined 4.17 percent after the government decided to sell its remaining 14 percent stake in the company.
Tesco lost 3.86 percent, after it announced immediate price match at checkout.
Barclays surrendered 2.01 percent. The Financial Times reported yesterday that the company plans to appoint former J.P. Morgan Chase & Co. executive Jes Staley as its new chief executive. Barclays responded today, stated that the process of appointing a new Group Chief Executive Officer has not yet concluded.
Meanwhile, SAB Miller surged 9.02 percent, after agreeing to the terms for a combination with Anheuser Busch Inbev. AB Inbev was 1.68 percent higher in Brussels.
Home builder Bellway, which reported increased full-year results, gained 3.59 percent.
Germany's economic confidence dropped to a one-year low in October as the scandal at Volkswagen dampened investors' mood, survey data from the Mannheim-based Centre for European Economic Research, or ZEW, showed Tuesday.
The investor confidence index fell more-than-expected to 1.9 in October from 12.1 in September. The seventh consecutive decline took the score to the lowest since October 2014, when it stood at -3.6. It was forecast to drop to 6.5.
Germany's consumer prices remained flat as initially estimated in September and wholesale prices continued to fall, final data from Destatis showed Tuesday.
As estimated, consumer price inflation fell to zero from 0.2 percent in August. A lower rate of -0.3 percent had been registered this year in January.
Another report from Destatis showed that wholesale prices continued to decline in September. On a yearly basis, wholesale prices slid 1.8 percent year-on-year after falling 1.1 percent in August. This was the biggest fall since February. Prices have been falling since July 2013.
U.K. inflation turned negative again in September and factory gate prices continued to decline strengthening the assessment that interest rates are unlikely to be raised anytime soon. Consumer prices dropped 0.1 percent year-on-year in September, after staying flat in August, the Office for National Statistics reported Tuesday. Economists had expected prices to remain flat.
UK house prices in August rose at the same pace as in the previous month, exceeding economists' expectations, figures from the Office for National Statistics showed Tuesday. The house price index climbed 5.2 percent year-on-year, same as in July. Economists had forecast a 5 percent increase. The latest rise was the smallest since September 2013, when prices grew 3.8 percent.
Like-for-like sales in the United Kingdom advanced 2.6 percent on year in September, the British Retail Consortium said on Tuesday. That beat forecasts for an increase of 1.5 percent following the 1.0 percent decline in August.
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