European Stocks Fall on Geopolitical Concerns

European stock markets weakened on Tuesday amid growing geopolitical concerns and fears of a global economic slowdown.

As of 0340 GMT (0740 GMT), Germany's DAX was down 0.6%, France's CAC 40 was down 0.4%, while the UK's FTSE 100 was flat. In Taiwan, European stock markets were negatively affected from Asia following media reports that US House Speaker Nancy Pelosi will visit Beijing's claimed territory in Taiwan later in the day. Chinese Foreign Ministry spokesman Zhao Lijian said on Monday that such a move would increase tensions between the world's two economic superpowers and lead to "very serious developments and consequences". The United States has also accused Russia of using Ukraine's largest nuclear power plant as a "nuclear shield" and creating the risk of a nuclear accident by deploying troops there. These developments came at a time when manufacturing PMI data released in the last few days from the United States, Europe and Asia showed a slowdown in factory activity in July, raising fears of a recession. However, losses were limited as quarterly corporate earnings were generally supportive. BP (LON:BP) shares rose 4.5% after the energy giant's second-quarter profit rose to a 14-year high of $8.45 billion, as strong refining margins and oil trading helped it boost dividends and share buybacks. AP Moeller-Maersk (CSE:MAERSKb) shares rose 1.5% after the Danish shipping giant raised its full-year guidance on Tuesday as a long-awaited cooling in global freight rates failed to materialize in the second quarter. Greggs (LON:GRG) shares rose 2.2% after the UK-based bakery chain said sales rose 27% in the first half from a year earlier, keeping its profit forecast unchanged for the year despite cost pressures. Oil prices fell on Tuesday, extending the previous session's sell-off on concerns that a downturn in global output will hit demand ahead of a meeting of major producers to discuss future output. The Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, will meet on Wednesday to discuss future supply. The group, which recently rolled back pandemic-era cuts in oil supply, is expected to keep production stable despite pressure from the US to increase production. As of 03:40 BST, US crude oil futures were trading down 0.3% at $93.58 per barrel, while the Brent contract fell 0.6% to $99.46. Separately, gold futures were flat at $1,787.70/oz, while the EUR/USD pair traded 0.5% lower at 1.0215.