The European markets drifted lower on Tuesday after climbing to seven-year highs yesterday in the wake of upbeat German business sentiment data and optimism that the situation in Greece will not lead to another eurozone crisis.
The U.K. economy grew at a slower pace in the fourth quarter while U.K. mortgage approvals decreased more than expected in December, separate reports showed, dampening investor sentiment to some extent.
On the earnings front, major industrial firms such as Royal Philips NV and Siemens AG posted disappointing earnings.
U.K. gross domestic product grew 0.5 percent sequentially, slower than the 0.7 percent expansion seen in the third quarter and a 0.6 percent rise forecast by economists, preliminary estimates from the Office for National Statistics showed. On an annual basis, GDP grew 2.7 percent in the fourth quarter.
The number of loans approved for house purchases, meanwhile, fell to 35,667 in December from 36,657 in November, data from British Bankers' Association revealed. Economists expected the approvals to fall to 36,500.
The Euro Stoxx 50 index of eurozone bluechip stocks is losing 0.6 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is down 0.3 percent. Around Europe, the U.K.'s FTSE 100, the German DAX and France's CAC 40 are down between 0.3 percent and 0.5 percent.
Banking stocks are underperforming, with BNP Paribas, Commerzbank and Deutsche Bank losing 2-4 percent.
Siemens' shares are down nearly 3 percent in Frankfurt. The industrial conglomerate confirmed its full-year outlook despite posting lower profit for the first quarter.
Philips' shares are tumbling 5 percent in Amsterdam after the Dutch electronics group reported a 67 percent slump in annual net profit.
Ericsson is moving down 0.7 percent in Stockholm after the Swedish mobile network equipment maker reported lower profit in its fourth quarter despite a slight increase in net sales.
Swiss pharmaceutical giant Novartis is rising 1.8 percent in Zurich. The company posted lower profit in its fourth quarter, mainly reflecting the impact of its divestments as it aims to focus on core businesses of innovative pharmaceuticals, eye care, and generics.
Elsewhere, the Asian markets rose broadly, although gains were capped ahead of a two-day FOMC meeting that gets underway later today. Chinese shares fell on profit taking after five successive days of gains, as data showed industrial profits grew at their weakest pace in two years in 2014.
U.S. stock index futures point to a lower open ahead of data on durable goods orders, new home sales and consumer confidence.
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