European shares fall on Tuesday

European shares fell on Tuesday, with the pan-European STOXX 600 down 0.5 per cent as market sentiment weakened due to declines in metal miners and disappointing earnings from luxury retailer Hugo Boss.

The basic resources sub-index led the losses, dropping 1.7 per cent as copper prices eased. London-listed shares of Rio Tinto fell 2.5 per cent after reporting second-quarter iron ore shipments below expectations.

Hugo Boss shares plummeted 8.4 per cent after the company revised its annual sales forecast downward, citing weak global consumer demand, particularly in China and the UK. This decline pulled the personal and household goods sector down 0.6 per cent.

Investor focus remained on US political developments, especially the aftermath of the attempted assassination of Donald Trump. Fiona Cincotta, a senior market analyst, noted that the possibility of Trump winning a second term could negatively impact European stocks due to potential protectionist policies.

In contrast, Ocado surged 14.6 per cent after raising its annual forecast, attributed to improved profitability in its warehouse technology business. Swedish banking group SEB rose 3.6 per cent following better-than-expected quarterly profits.

On the economic front, Italian EU-harmonised consumer prices (HICP) increased by 0.2 per cent month-on-month in June, marking a 0.9 per cent rise compared to the previous year. The European Central Bank is expected to hold interest rates in its upcoming policy meeting while investors await comments on future rate cuts.