European Markets Wobble Amid China Concerns and Earnings Fallout

European shares declined on Tuesday, driven by concerns over potential U.S.-China tensions following Donald Trump's anticipated selection of Marco Rubio as Secretary of State. This, combined with disappointing earnings from key companies, contributed to losses across sectors, although some firms showed resilience through positive forecasts.

European shares slid on Tuesday, impacted by fears that U.S.-China relations might deteriorate. This sentiment was driven by speculation that Donald Trump is likely to appoint Marco Rubio, a known China hawk, as the top U.S. diplomat.

The pan-European STOXX 600 index dropped by 0.8%, reversing its previous session's gains. Investors remain cautious about the future, especially regarding potential tariff hikes following Trump's recent electoral victory.

Earnings reports added to market challenges. Notable was Brenntag's 9.4% loss due to missing profit expectations and Bayer's 11.2% drop after reducing its earnings forecast. However, pharmaceutical company AstraZeneca and UK-based Convatec Group both recorded share price increases, balancing the broader market decline.

(With inputs from agencies.)