LONDON ( The Deal) -- European stocks continued their freefall on Tuesday, as declines in U.K. manufacturing and German imports added to worries about a wobbly recovery, with troubled U.K. food retailer Tesco (TSCDY) leading London stocks lower. 

In London, the FTSE 100 shed 1.03% to 6,603.69 while in Frankfurt the DAX retreated 0.72% to 9,943.35. In Paris, the CAC 40 dropped 0.80% to 4,340.69. 

U.K. manufacturing output fell 0.7% in October after rising by 0.6% in September, the country's Office for National Statistics said in London. Meanwhile in Germany, Europe's largest economy, imports dropped a greater-than-expected 3.1% in October while exports fell by 0.5%, according to Germany's Federal Statistics Office. 

Tesco was down 10.3% after announcing that year trading profit won't exceed 1.4 billion pounds ($2.2 billion), well below the 2.4 billion to 2.5 billion pounds range it gave before admitting this summer that it had overstated profit estimates. 

The company said it would give more details on Jan. 8 about planned measures to bolster its U.K. business and its overall balance sheet.

"We still have much to do but are making good progress in developing our plans to improve the long-term positioning of the group," said CEO Dave Lewis in a statement Tuesday. 

Royal Bank of Scotland  (RBS)  slid 1.25% after Bloomberg News reported that it could seek offers for its non-U.K. wealthy clients business, Coutts International, as soon as this week. 

First-round offers are reportedly due by Friday and are expected to fetch between $600 million and $900 million. 

Energy stocks including Total (TOT) in Paris and BP (BP)  in London were also down across the continent after Iraq followed Saudi Arabia's lead in cutting January crude-oil prices to Asia and the United States. 

In Frankfurt, Deutsche Bank (DB)   fell 0.65% amid a U.S. federal tax-fraud lawsuit seeking more than $190 million in back taxes plus penalties and interest. The suit was filed in the Southern District of New York. 

Asian indices were also bleeding red on Monday, with the Nikkei dropping 0.7% in Tokyo and the Hang Seng declining 2.3%. Stocks in China tumbled 5.4%.

 

 

 

 

 

 

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