European Markets Close Lower On Rate Concerns, Weak Regional PMI Data

European markets closed lower amid rate and valuation concerns, with weak regional purchasing manager data adding pressure. The pan-European Stoxx 600 fell 0.9% on Tuesday as investors weighed skepticism about spending on AI infrastructure and concerns over possible interest-rate hikes by the Federal Reserve. Data also came in soft, with Germany’s S&P Global Flash Composite PMI slipping to 48.0 in June 2026 from 48.8 in May, missing expectations of 49.9, indicating a third straight month of contraction. Germany’s Services PMI fell to a 43-month low of 46.8, while manufacturing rose to 50.8. Country indexes were mixed-to-lower: the UK’s FTSE 100 dropped 0.52%, Germany’s DAX fell 1.05%, and France’s CAC 40 lost 0.7%, while Switzerland’s SMI rose 0.45%. Sector moves included mining declines in the UK and a notable 9% drop for STMicroelectronics in France.