European markets are mostly trading notably lower on Tuesday, amid persisting worries about trade war concerns, geopolitical tensions, Italian budgetary woes and uncertainty about a smooth Brexit. Some disappointing earnings reports too are weighing on sentiment in the region.
With the mood quite bearish stocks have plunged to multi-month lows, with many falling to their lowest levels in about two years.
Among major European markets, France is down with its benchmark CAC 40 losing about 1.5 percent, Germany's DAX drifting down by about 2.2 percent and the U.K.'s FTSE 100 declining by 1.1 percent.
Among other markets in Europe, Turkey is down by about 1.5 percent. Turkey's main index BIST had lost about 1.84 percent in the previous session.
Italy's FTSE MIB index is down nearly 1%. The index had moved higher on Monday as Italian stocks rallied after Moody's Investors Service removed the immediate threat of a downgrade to junk.
Sweden, Spain, Portugal, Poland, Norway, Italy, Greece and Czech Republic are trading lower by 0.6 to 2 percent. Most of the other markets in the region are down as well.
In economic news, British factory orders dropped at the fastest pace in three years in the quarter to October as manufacturers remained worried about the possibility of a disorderly Brexit, a survey by the Confederation of British Industry showed on Tuesday.
Turkey's consumer confidence deteriorated for a third straight month to its lowest level in nearly a decade during October as inflation rocketed to a 15-year high in the previous month.
The consumer confidence index dropped to 57.3 from 59.3 in September, data from the Turkish Statistical Institute showed on Tuesday. The reading was the lowest since December 2008, when it was 56.7.
Households' financial expectations and their view on unemployment situation in the next 12 months weakened sharply.
Expectations regarding the economy also eroded. However, consumers plan to save more in the next 12 months.
Headline inflation shot up to 24.52 percent in September, which was the highest in 15 years.
The Turkish central bank is set to hold its policy session this week. Economists widely expect the bank to leave interest rates unchanged at 24 percent.
Germany's producer prices rose the fastest pace in a year in September, figures from Destatis showed Tuesday.
Producer prices grew 3.2 percent year-on-year in September, after rising 3.1 percent in the previous month. Economists were looking for a 3.0 percent gain. The inflation rate was the highest since September 2017, when prices advanced 3.2 percent.
On a month-on-month basis, producer prices climbed 0.5 percent after a 0.3 percent increase in August. The rate was forecast to remain unchanged at 0.3 percent.
Excluding energy, producer prices remained unchanged on month, while rising 1.6 percent annually. Energy prices rose 8.5 percent year-on-year.
Geopolitical worries following the disappearance and the subsequent alleged killing of journalist Jamal Khashoggi at a consulate in Turkey earlier this month, are increasing by the day.
The Turkish President Recep Tayyip Erdogan said that the killing of the journalist was a planned operation carried out by a Saudi team that entered the consulate on the day of the murder. According to Sky News, the body parts of the slain journalist have been found in the garden of the Saudi Arabian consul general's home in Istanbul.
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