European markets fall on weak China data, await U.S. inflation report

The STOXX 50 and STOXX 600 dropped 0.3% on Tuesday, ending an eight-day winning streak.

European markets fall on weak China data, await U.S. inflation report

Investor sentiment weakened following disappointing trade data from China, which tempered the optimism sparked by China's announcement of looser fiscal and monetary policies for the upcoming year. Traders also took a cautious approach ahead of the U.S. CPI report on Wednesday and the ECB's monetary policy decision on Thursday.

LVMH, Allianz, BASF, and Kering lead losses; VW shares rise amid strikes

LVMH (-1.3%), Allianz (-1.9%), BASF (-1.4%), and Kering (-0.9%) were among the biggest losers. On the other hand, VW shares rose 0.7%, despite ongoing strikes, as the company resumed negotiations with labor unions.