European stocks stable as carmakers declined and miners rose

On Tuesday European stocks were little changed after their biggest decline in two weeks, with investors awaiting economic data and minutes from the Federal Reserve’s last meeting.

The Stoxx Europe 600 Index rose 0.1 percent at 08:10 a.m. in London. Autos were the biggest sectoral losers, down 1.4 percent, with Schaeffler, Peugeot and BMW leading the sector lower.

Figures for U.S. sales of new vehicles in March at major carmarkers came in below market expectations while investor worries over the outlook for diesel vehicles has cast a cloud over European auto stocks.

Banking stocks were also under pressure, falling 0.5 percent. Spain’s Banco Popular extended its slide from the previous session, taking losses over the past two sessions to more than 13 percent after the lender announced a restatement on Monday and said that its CEO is to step down.

Oil stocks were among standout sectoral gainers, however, rising around 0.3 percent, rebounding from losses in the previous session. Likewise, basic resources stocks rose 0.3 percent. Broker action boosted individual names, with Rotork jumping 4.6 percent after JP Morgan raised the valvecontrol systems maker to “overweight” from “neutral”.

Stocks with South African exposure, such as Old Mutual and Investec, were also down, falling 2.5 percent and 1.8 respectively after S&P Global Ratings cut the country’s credit rating to sub-investment grade with a negative outlook, sending the rand lower.

Japan’s Nikkei share average fell to 10-week lows as the safe-haven yen rose and as automakers tumbled on weaker-than-expected U.S. sales. The Nikkei dropped 0.9 percent to 18,810.25 points, the lowest closing level since 24 January. The broader Topix dropped 0.8 percent.

The dollar extended overnight losses and was down 0.4 percent at 110.51 yen after hitting 110.370, its lowest in a week, as investors are cautious before the upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping.