Europe open: Stocks in the red as miners lose ground

European stocks pushed lower in early trade, with basic resources under pressure as the post-Brexit rally lost steam amid rising geopolitical tensions.

At 0900 BST, the benchmark Stoxx Europe 600 index was down 0.7%, Germanys’ DAX was 0.8% weaker and France’s CAC 40 was off 0.7%.

Losses in Europe came despite US markets reaching all-time highs on Monday thanks to strength in technology and bank stocks.

CMC Markets’ Jasper Lawler said: “Geopolitical shocks have played their part in holding down European markets over the past two trading days with investors concerned by events in Nice and Turkey. Late last night an Afghan refugee was reportedly killed by police in Germany for attacking train passengers with a knife and axe, in what appears to be another terrorist-motivated lone wolf attack.”

At the same time, oil prices slipped, with West Texas Intermediate and Brent crude down 0.5% at $45.03 a barrel and $46.71, respectively.

In terms of sectors, miners were the worst performers, with the Stoxx 600 basic resources index down 2% amid declining metals prices.

In corporate news, Swedish industrial rubber maker Trelleborg was on the back foot after its earnings met expectations but the company sounded a cautious note on the outlook.

Dutch paint and chemicals maker AkzoNobel fell despite posting better-than-forecast second-quarter earnings.

Rio Tinto traded lower after a second-quarter operations review, while Royal Mail was just a touch weaker after it said trading for the three months ended 26 June was in line with its expectations, with group revenue up 1% and UK revenue down 1%.

Pharmaceutical company Novartis nudged higher after reporting slightly better-than-expected second-quarter profit but warning that profit for the year could fall.

Online clothing retailer Zalando bucked the trend, surging after lifting its 2016 profit guidance and reporting a strong second quarter.

Investors in the UK will be eyeing the release of key inflation figures at 0930 BST. The ZEW survey is at 1000 BST, while US housing starts and building permits are at 1330 BST.

Naeem Aslam, chief market analyst at Think Markets, said the ZEW survey is expected to reveal the impact of Brexit so “the reading may not be as shiny this time around”.