Commodities sank European stock markets Tuesday after a stronger dollar, supply concerns and an increasingly uncertain outlook for global growth conspired to darken the mood among investors.
Rising oil production in Libya and Nigeria led investors to renew their focus on the efficacy of the OPEC oil agreement Tuesday while a 26% fall in Chinese steel exports left a question mark hanging over the demand and pricing picture in Europe.
The FTSE 100 fell 0.68% to 7,472 in London while the mid-market FTSE 250 index also slipped 0.51% to 19,771.
In Frankfurt, the DAX index fell 0.58% to 12,814 while the CAC 40 dropped 0.32% in Paris to close at 5,293.
Stocks were also weaker in Southern Europe, with the FTSE MIB in Milan and the IBEX in Madrid both slipping more than 0.50%.
The resources-heavy London market was hit hard by a 2% fall in the price of Brent crude, which led oil majors such as BP BP and Royal Dutch Shell RDS.B lower, toward the bottom of the FTSE 100.
Mining companies also saw heavy losses, with heavyweights such as BHP Billiton (BHP) , Glencore (GLNCF) , Rio Tinto (RIO) , and Antofagasta (ANFGY) all shed 3% or more Tuesday, while iron ore, lead, nickel, copper and zinc futures all saw notable losses during London trading.
In Frankfurt, steel and industrial equipment maker Thyssenkrupp (TYEKF) was among the top fallers on the DAX while financial titan, and commodity exposed lender, Commerzbank (CRZBY) also sat deeply in the red.