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European Stocks Close Lower as Traders Digest U.S. Inflation Data; AB Foods Up 8%

Wang Ying | Xinhua News Agency | Getty Images
  • The pan-European Stoxx 600 closed down by 0.2% provisionally, having earlier been in positive territory.
  • The U.S. October producer price index came in as expected Tuesday, with PPI rising 0.6% month over month, in line with estimates.
  • Looking at individual stocks, Primark owner AB Foods climbed 8% to lead the Stoxx 600 after strong results.

LONDON — European stocks closed lower Tuesday, as investors assessed a key reading of U.S. inflation data.

The pan-European Stoxx 600 closed down by 0.2% provisionally, having earlier been in positive territory. Basic resources shares slid 1.2%, while the retail sector was up 1.2%.

The U.S. October producer price index came in as expected Tuesday, with PPI rising 0.6% month over month, in line with estimates. The consumer price index, slated for Wednesday, will also be closely watched.

U.S. stocks dipped in early trading Tuesday, after the major averages closed at records the day before, boosted by strength in infrastructure stocks.

Earnings in Europe before the bell came from the likes of Bayer, Munich Re and Porsche.

Looking at individual stocks, Primark owner AB Foods climbed 8% to lead the Stoxx 600 after strong results.

Toward the bottom of the European blue chip index, Swedish Match fell 5.2% after JPMorgan cut the stock to "underweight." Darktrace was the worst individual performer, falling 6.1% as investors took profit following a 12% surge in the share price a day earlier.

On the data front, Germany's ZEW survey of economic sentiment vastly outstripped expectations in November, coming in at 31.7 against a forecast of 20.0.

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— CNBC's Ryan Browne Pippa Stevens contributed to this market report.

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