European Stocks Decline Amid Economic Concerns

LONDON — European stock markets experienced a downturn on Tuesday, diverging from the positive momentum seen in the U.S. The pan-European Stoxx 600 index closed 0.21% lower, recovering slightly from earlier losses. Mining stocks were particularly hard hit, dropping 1.6%, while the travel sector managed a modest gain of 0.5%. In contrast, the U.S. markets celebrated new highs, with the Dow Jones Industrial Average soaring by 547 points, or 1.3%, fueled by optimism surrounding potential interest rate cuts. The fashion industry faced significant challenges, with Germany's Hugo Boss seeing a steep decline of 7.5% after revising its full-year sales outlook downward due to ongoing macroeconomic and geopolitical issues. Similarly, Burberry in the U.K. fell 5.2% following a profit warning linked to weak demand in the luxury market. Sweden's Swedbank also reported a 1.3% drop after announcing a decrease in second-quarter net profits. In a more positive light, British online grocer Ocado saw its shares rise as much as 18.5% before settling at a 6% increase after reporting a reduced first-half loss and raising its full-year guidance. This mixed performance reflects the broader uncertainty in the market as investors weigh various economic indicators. Global markets are also reacting to dovish remarks from U.S. Federal Reserve Chair Jerome Powell, who indicated that the central bank may not wait for inflation to reach 2% before considering interest rate cuts. This sentiment has influenced trading patterns across Asia-Pacific markets, which showed mixed results overnight.