European Markets Tumble Amid Economic Concerns and Political Uncertainty

European shares opened lower with a broad-based decline as markets weigh the potential impact of Donald Trump's policies and poor earnings reports. The STOXX 600 index fell 0.9%, led by declines in chemicals and basic resources. Concerns arose from weak Chinese loan demand and potential U.S.-China tensions.

European markets experienced significant downturns as trading commenced on Tuesday, with a general decline affecting various sectors. The downturn coincided with growing apprehension regarding the anticipated policy directions of U.S. President-elect Donald Trump, compounded by disappointing earnings results from several major companies.

The pan-European STOXX 600 dropped 0.9% early in the session, with chemical companies being among the hardest hit, experiencing a 1.4% decrease. Basic resources were also on a downward trajectory, decreasing by 1.5% in response to falling metal prices, while luxury firms with heavy exposure to China saw a 1.3% decline.

Concerns grew as Chinese stock markets felt pressure following data revealing weaker-than-expected loan demand for October. Additionally, speculation rose that Trump might appoint the China-critical U.S. Senator Marco Rubio as secretary of state, heightening fears of future U.S.-China trade tensions.

(With inputs from agencies.)