Market Tremors: European Shares Hit Two-Week Lows

European shares plunged to two-week lows, driven by drops in energy and healthcare stocks as investors anticipated central bank decisions. Declines in oil prices and investor caution about advancements in interest rates further pressured markets, while positive corporate moves in Airbus and Telecom Italia provided some uplift.

European markets took a downturn on Tuesday, hitting their lowest levels in two weeks, led by declines in energy and healthcare sectors. The pan-European STOXX 600 index shed 0.4% by 0924 GMT, reaching its lowest point since the start of December.

Energy stocks dropped as crude prices dipped, driven by renewed concerns over demand following disappointing economic data from China. Healthcare stocks also fell as markets awaited key monetary policy decisions from major central banks, including anticipated rate cuts from the Federal Reserve.

Amidst these pressures, a rise in the U.S. Treasury yield to its highest in several weeks placed additional strain on global stocks. However, amidst the challenges, Airbus shares rose after an upgrade from Deutsche Bank, and Telecom Italia saw gains on acquisition news, offering some positive notes in an otherwise cautious market environment.

(With inputs from agencies.)