European stocks closed lower on Tuesday and recorded their first negative month since October after a flurry of earnings and data weighed on investor sentiment.
The regional Stoxx 600 index ended the day 0.6% lower, with all major bourses in the red.
Most sectors declined, with autos falling 4.3% and basic resources dipping 1.14%. Healthcare stocks were one of the only sectors in the green, ending up 0.2%.
Preliminary data showed that euro zone inflation held steady at 2.4% in April, in line with estimates. Core inflation, which strips out energy, food, alcohol and tobacco, came in at 2.7%.
Meanwhile, gross domestic product for the bloc rose 0.3% over the first three months of the year, following a 0.1% contraction in the last quarter of 2023.
For April, the Stoxx 600 fell 1.49% — the first month since October that it’s ended the month in the red.
Overnight, Asia-Pacific markets largely rose on Tuesday, tracking Wall Street moves, with investors digesting China manufacturing purchasing managers’ index for April.
Meanwhile, U.S. stocks fell on disappointing earnings and inflation data. Investors this week are bracing for megacap earnings, the latest Federal Reserve interest rate decision on Wednesday, and a jobs report.
The U.S. central bank is broadly expected to keep interest rates steady, but traders will be listening to see if Fed Chair Jerome Powell’s post-meeting comments are more hawkish after the recent spate of hotter inflation reports.