LONDON (TheDeal) -- European stock markets fell on Tuesday, taking their cue from Asia, where Chinese indices led the region lower.
In London, the FTSE 100 was down 0.52% at 6,516.37. In Frankfurt, the DAX slipped 0.18% to 10,920.51, and in Paris the CAC 40 dropped 0.32% to 4,969.09. The Athens benchmark was down 1.42% at 671.28 as the government eased capital controls.
July consumer price data from the U.K. confirmed that the specter of deflation is retreating. Prices were down 0.2% month on month, compared with expectations for a 0.3% decline, with the annual inflation rate at a modest 0.1%, compared with a consensus forecast that inflation would remain at zero in July.
In London, oil-sector supplier John Wood was down close to 4% after reporting first-half results that included a 19.3% decline in first-half revenue to $3.07 billion and a 14.3% decline in profit from continuing operations to $156.3 million as clients reduced activity. The company kept its full-year profit forecast unchanged and announced progress on cost cuts.
Reflecting a general malaise in the oil sector, explorer Cairn Energy (CRNCY) was also down more than 4%. It said it expects to start drilling in Senegal in the fourth quarter and noted that it's in dispute with the Indian government over its 10% stake in Cairn India, which is the target of a bid from a separately listed Cairn India sister company.
Car dealer Marshall Motor Holdings rose close to 5% after posting its first set of results since its March IPO. The first-half figures, which included a 7% rise in pretax profit, were better than most expectations and analysts at Investec Bank raised their full-year revenue target by 4% following the report.
Aviation services and news distributor John Menzies (MZTLF) fell almost 4% as it announced a 60% decline in first-half profit and warned of the impact of a pending increase in the minimum wage.
In Amsterdam, Delta Lloyd (DLLLF) edged higher after Morgan Stanley lifted its recommendation on the insurer and its price target.
Asian indices ended the day predominantly in the red, with all benchmarks in Hong Kong, mainland China and Australia posting sharp losses.
The Shanghai Composite index plunged 6.16% to 3,748.16. In Hong Kong, the Hang Seng closed down 1.13% at 23,545.18. In Sydney, the S&P/ASX 200 was down 1.20% at 5,303.15.
The Reserve Bank of Australia, which has cut interest rates twice this year, said a weaker Australian dollar is helping exports. It made the comments in minutes of its Aug. 4 meeting. It also noted that surveys suggest companies will rein in investment for some time to come.
In Tokyo, the Nikkei 225 ended the day 0.32% lower at 20,554.47 and the Topix shuffled down 0.04% to close at 1,672.22.
In Bangkok, the Thai-SET 50 index closed down 2.32% at 898.5 following yesterday's fatal bomb attack at a Buddhist shrine in the Thai capital.