European Stock Markets Head Lower After Selloff in Asia

European stock markets fell on Tuesday, taking their cue from Asia, where Chinese indices led the region lower, with the Shanghai benchmark tumbling more than 6%. July consumer price data from the U.K. confirmed that the specter of deflation is retreating, adding to mounting expectations that interest rates will shortly be heading upwards after sitting for almost six-and-a-half years at a historic low 0.5%. Oil-sector stocks John Wood and Cairn Energy both fell sharply on first-half updates, and John Menzies declined as it announces a slump in first-half profit and became one of the first companies to warn of the impact of a pending increase in the U.K.’s minimum wage.