Europe open: Equities in the red as Chinese data weighs; SABMiller surges

European stocks were in the red on Tuesday as mixed trade figures out of China reignited fears over a slowdown in the world’s second-largest economy.

At 0850 BST, the benchmark Stoxx Europe 600 index was down 0.8%, Germany’s DAX was down 0.9% and France’s CAC 40 was 1.2% weaker.

Data released earlier showed dollar-denominated exports in China dropped 3.7% in September from a year earlier, while imports fell 20.4%, marking their eleventh consecutive month of decline. Exports were better than expected but imports were weaker, raising doubts over domestic demand.

“While Chinese exports posted a healthy rebound, weak imports are still indicating that the Chinese economy is continuing to struggle,” said Markus Huber, senior analyst at Peregrine & Black.

The Stoxx Europe 600 basic resources took a hit, slumping 2.4% as worries about China – a major consumer of metals – gathered pace.

“Later today focus will shift onto the US where earnings season is shifting up a gear with JPMorgan and Intel reporting after the close of trading. Overall sentiment remains neutral with markets feeling a tiny bit tired and likely to continue to consolidate after the huge run-up of last week. However lower prices are likely to tempt buyers back into the market especially the ones who have missed out on the initial run-up just over a week ago,” said Huber.

On the corporate front, SABMiller shares shot higher after an agreement in principle to a possible £44 per share takeover offer from Anheuser-Busch InBev.

Shares in German software company SAP rallied after the company reported better-than-expected third-quarter sales and operating profit.

On the downside, Barclays slipped into the red following press reports that it’s set to name US investment banker Jes Staley as its new chief executive.

Luxury goods group LVMH slid following a mixed set of third-quarter results.

Still to come on the macroeconomic calendar, the German ZEW survey is at 1000 BST.