European stock markets slip on inflation data, earnings

The DAX index traded 0.9% lower, the CAC 40 tumbled 1% and the FTSE 100 in the U.K. slipped 0.4%

European stock markets slid Tuesday as investors digested fresh regional employment and inflation data as well as quarterly earnings from some major companies.

At 08:10 GMT, the DAX index in Germany traded 0.9% lower, the CAC 40 in France tumbled 1% and the FTSE 100 in the U.K. slipped 0.4%.

Investors will return to scrutinizing fresh economic data this week, after the political turmoil of last week, starting with an inflation figure from Germany and UK employment data, released earlier Tuesday.

German inflation, harmonized to compare with other EU countries, advanced to 2.4% in October, confirming preliminary data, after having increased by 1.8% year-on-year in September.

While the ECB policy makers wouldn't want to see inflation in the eurozone’s biggest economy increase above their 2% target price once more, this is unlikely to stop the easing of monetary policy once more into the year-end.

The UK unemployment rate increased by more than expected in September, data showed Tuesday, rising to 4.3% in the three months to September, from 4.0% in the three months to August.

Signs of a cooling labour market come after Britain's economy grew in August following two successive months of stagnation, and after the BoE reduced interest rates, for the second time this year, last week.

There are more economic numbers to digest later in the week, including US inflation and UK GDP on Thursday.

Still, sentiment remains on edge, with investors wary of the ramifications of President-elect Donald Trump’s return to the White House, especially given his proposed policy of tariffs, potentially resulting in a trade war.

Additionally, the German Chancellor Olaf Scholz is expected to shortly call a vote of confidence in parliament, a move that would pave the way for snap elections following the collapse of his three-way governing coalition.