European Stocks Decline Amid U.S.-China Trade Tensions

European stocks fell on Tuesday, as concerns over a U.S.-China trade war intensified. The STOXX 600 dropped 0.6%, with Michelin's shares plummeting after it cut its annual forecast. U.S. and China imposed new port fees, impacting sectors like mining and automaking, while Ericsson reported positive earnings.

European stock markets experienced a downturn on Tuesday, driven by escalating worries regarding a potential trade war between the U.S. and China. The pan-European STOXX 600 index fell by 0.6%, reaching a near two-week low, as market reactions followed varied messages from U.S. President Donald Trump on trade tariffs.

A significant blow came from the tire industry, where French company Michelin saw its shares drop 9.3% due to a downgraded annual sales outlook. The company attributed the forecast cut to challenging business conditions in North America which had adversely affected sales and profit margins.

In a broader market context, the mining sector led declines among European sectors, falling 2%, while automaker stocks fell 1.5%. Meanwhile, Swedish telecoms company Ericsson boosted market sentiment somewhat by reporting unexpectedly strong quarterly earnings, underscoring resilience amid burgeoning trade issues.

(With inputs from agencies.)