German stocks topped the losses among European exchanges on Tuesday, as shares of Lanxess, a specialty chemicals company, fell after the firm lowered its forecasts. A modest interest rate cut in China also failed to boost investor sentiment. The DAX index dropped by 0.3% by 07:50 GMT, continuing to move away from the record high it reached last Friday. The Stoxx 600 index declined by 0.1%.
Lanxess's shares plummeted by 15.4% to their lowest level in over three years after the German company revised down its core earnings forecasts for the second quarter and the entire year, stating it does not expect a recovery in demand in June as customers continue to reduce inventory. The chemicals sector index fell by 1.7%, leading sector losses.
China lowered its main lending rates on Tuesday, but investors are concerned that the cut may be too modest to effectively stimulate the sluggish economic recovery, and they are awaiting a broader stimulus package. Meanwhile, Sanofi's shares boosted the healthcare sector, rising by 2.5%.
