European markets fell Tuesday as investor sentiment turned negative with concerns of the mounting debt pressure faced by the euro zone as Spain has not yet sought help to reduce its increasing borrowing costs.
The French CAC 40 index was down 0.89 percent or 30.74 points to 3404.24. Shares of Alstom SA slumped 6.57 percent and those of AXA SA dropped 1.47 percent.
London’s FTSE 100 index fell 0.53 percent or 30.68 points to 5789.77. Shares of Evraz PLC dropped 2.29 percent and shares of Kazakhmys PLC declined 1.40 percent.
The German DAX 30 index declined 0.66 percent or 48.54 points to 7278.19. Shares of Deutsche Bank AG fell 1.16 percent and those of Daimler AG dropped 1.07 percent.
Spain's IBEX 35 was down 0.78 percent or 60.50 points to 7723.60. Shares of ArcelorMittal fell 1.96 percent and those of Telefonica SA dropped 1.30 percent.
The lack of announcement on Spain's decision on whether to seek help from the newly declared bond-buying program by the European Central Bank (ECB) is affecting investor sentiment. Market participants expect Spain to ask for a bailout under the enhanced conditions credit line (ECCL), which will trigger the bond purchasing operation by the ECB.
The ECB's recent promise to buy peripheral government bonds without limit has certainly helped boost market sentiment. But investors worry since Spain and Italy are apparently no way closer to asking for support.
Greece announced Monday the fiscal measures to generate the 13.5 billion euros ($17 billion) of savings demanded by the troika, comprising the European Commission (EC), International Monetary Fund (IMF) and the European Central Bank (ECB). Investors hope that by this announcement, the Greek government has moved a step closer to gaining the next loan installment from its bailout package.
However, market concern persists that securing the next bailout installment will not end the uncertainty about Greece’s long-term future in the euro currency. There is worry that the deterioration in the growth outlook this year means that the economic assumptions on which the rescue package was initially based are presently too optimistic.