European Shares Tumble Amid Defense and Energy Declines

European markets experienced a downturn as defense and energy stocks fell, influenced by disappointing jobs data from both the U.S. and Europe. The STOXX 600 index dropped 0.4% with significant losses in London's and Germany's markets. Central bank decisions remain a key focus for investors this week.

European stock markets faced a downturn on Tuesday, primarily driven by significant declines in defense and energy sectors. Investors are grappling with disappointing domestic and U.S. jobs reports, leading to a 0.4% drop in the pan-European STOXX 600 index.

Major indices in London and Germany each fell by 0.6%. Notably, Germany's private sector growth has decelerated for two consecutive months. Meanwhile, U.S. data showed unexpected job growth despite an unemployment rate of 4.6%, with concern over a potential government shutdown causing further investor anxiety.

Defensive stocks suffered after progress in negotiations to end Russia's war in Ukraine, while central bank decisions are eagerly anticipated. Despite broader declines, financial services showed resilience, and Barry Callebaut rose on speculation about its global cocoa unit.

(With inputs from agencies.)