European Markets Continue To Weaken On "Brexit" Anxiety

(RTTNews) - The European markets ended Tuesday's session with another loss and reached their lowest level in three months. The markets have been on a losing streak for five consecutive sessions. Investor sentiment continues to be rocked by growing concerns that the U.K. will exit the European Union.

Two ICM polls, one online and one conducted by telephone, showed on Monday that Britain appears poised to leave the European Union with just over a week to go before referendum day.

The British pound hovered near a two-month low and yields on the 10-year government debt of Germany dipped below zero for the first time ever, reflecting growing anxiety over the prospect of the U.K. exiting the EU.

Investors are also hesitant to take positions ahead of tomorrow's announcement from the Federal Reserve. The Fed is widely expected to leave interest rates unchanged when it makes its monetary policy announcement on Wednesday, but traders are likely to keep a close eye on the accompanying statement.

The Euro Stoxx 50 index of eurozone blue chip stocks decreased 1.97 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 1.88 percent.

The DAX of Germany dropped 1.43 percent and the CAC 40 of France fell 2.29 percent. The FTSE 100 of the U.K. declined 2.01 percent and the SMI of Switzerland finished lower by 1.84 percent.

In Frankfurt, utility RWE sank 5.05 percent and peer E.ON surrendered 2.16 percent.

Daimler declined 2.61 percent and BMW weakened by 2.52 percent. Volkswagen also finished lower by 2.30 percent.

Deutsche Bank dropped 3.06 percent and Commerzbank lost 1.79 percent.

In Paris, Total fell 3.44 percent and Technip decreased 3.05 percent.

Peugeot weakened by 2.75 percent and Renault lost 2.39 percent.

Societe Generale surrendered 2.66 percent and BNP Paribas dropped 2.26 percent. Credit Agricole also closed down by 1.99 percent.

In London, electronics maker Premier Farnell soared 50.11 percent after Swiss-based Datwyler Holding agreed to buy the company for 165 pence in cash per share.

Ashtead Group advanced 2.98 percent after its full year earnings per share rose to 81.0 pence from to 60.1 pence a year ago.

Barclays declined 3.09 percent and Lloyds Banking Group fell 3.19 percent. Royal Bank of Scotland decreased 1.90 percent and Standard Chartered lost 1.72 percent.

Mining stocks were also under pressure Tuesday. Anglo American dropped 5.65 percent and Antofagasta weakened by 5.30 percent. BHP Billiton surrendered 4.09 percent and Glencore forfeited 3.57 percent.

Asset manager GAM Holding sank 17.90 percent in Zurich after warning its profit would probably fall by half in first-half, mainly due to lower performance fees.

Eurozone industrial production recovered at a faster than expected pace in April, Eurostat showed Tuesday. Industrial production climbed 1.1 percent in April from March when it fell by revised 0.7 percent. Production was forecast to expand 0.8 percent. This was the first increase in three months.

Eurozone employment increased at a stable pace for the second straight quarter in the three months ended March, figures from Eurostat showed Tuesday. The number of employed persons grew 0.3 percent quarterly in the first quarter, the same rate of rise as in the previous two quarters.

U.K. inflation held steady at a very low level in May as a rise in transport costs largely offset the decline in clothing and footwear prices. Meanwhile, factory gate prices continued the decline that started in mid-2014.

Inflation came in at 0.3 percent, the same rate as in April, data from the Office for National Statistics showed Tuesday. The figure was forecast to rise to 0.4 percent.

British house price inflation eased for the first time in eight months in April, figures from the Office for National Statistics showed Tuesday. The house price index rose 8.2 percent year-over-year in April, slower than previous month's 8.5 percent hike.

Retail sales in the U.S. increased by more than expected in the month of May, according to a report released by the Commerce Department on Tuesday. The Commerce Department said retail sales climbed by 0.5 percent in May after surging up by 1.3 percent in April. Economists had expected sales to rise by 0.3 percent.

Reflecting another substantial increase in fuel prices, the Labor Department released a report on Tuesday showing that U.S. import prices surged up by much more than expected in the month of May. The report said import prices jumped by 1.4 percent in May after climbing by an upwardly revised 0.7 percent in April.

Economists had expected import prices to rise by 0.8 percent compared to the 0.3 percent increase originally reported for the previous month.

The Labor Department said export prices also shot up by 1.1 percent in May following a 0.5 percent advance in April. Export prices had been expected to edge up by 0.2 percent.

Business inventories in the U.S. saw a slight uptick in the month of April, the Commerce Department revealed in a report released on Tuesday. The report said business inventories inched up by 0.1 percent in April after rising by a downwardly revised 0.3 percent in March.

Economists had expected inventories to edge up by 0.2 percent compared to the 0.4 percent increase originally reported for the previous month.