Thyssenkrupp shares jump 5% after Jindal Steel makes offer for steel unit

LONDON — European stocks moved lower on Tuesday, as investors assessed developments in the U.S.-China trade talks.

The pan-European Stoxx 600 was 0.8% lower by 3:00 p.m. in London (10:00 a.m. ET), with most sectors in negative territory. All major regional bourses traded lower, with Germany’s DAX shedding 1.2%.

U.S. Treasury Secretary Scott Bessent told CNBC on Tuesday that he expected further trade discussions between Washington and Beijing to take place before punitive tariffs are set to take hold in November.

“We’ll be seeing each other again,” Bessent said. “Each one of those talks has become more and more productive. I think the Chinese now sense that a trade deal is possible.”

So-called “liberation day” tariffs rolled out by U.S. President Donald Trump in April would have seen 145% duties slapped onto Chinese imports into America. Those tariffs were delayed to allow for trade negotiations to take place, with the deadline currently set for Nov. 10.

In corporate news, Thyssenkrupp topped the Stoxx 600 in afternoon trade following reports that the company had received a non-binding offer for its steel unit from India’s Jindal Steel. Shares of Thyssenkrupp were last seen around 5% higher.

Elsewhere, regional banking stocks fell on Tuesday, with the Euro Stoxx Banks index trading 1.7% lower as investors awaited the U.S. Federal Reserve’s monetary policy decision.

The central bank’s Federal Open Market Committee will convene on Tuesday for a two-day meeting to decide whether to cut interest rates. Money markets are currently pricing in a 25-basis-point cut to the Fed’s key interest rate, according to the CME’s FedWatch tool.

Among the worst performers in the European banking sector were Germany’s Commerzbank, down 3.3%, France’s Societe Generale, down 3%, and Spanish lender Caixabank, down 2.1%.  

In the U.K., official data showed on Tuesday that the country’s unemployment rate held steady at 4.7% in July, remaining at the four-year high it hit in June.  

Meanwhile, annual growth in average earnings — excluding bonuses — slowed to 4.8% in the three months to July, down from 5% in the previous three-month period.

“The headline unemployment rate, which held steady, masks a cooling trend that will be unsettling for many workers,” Danni Hewson, head of financial analysis at AJ Bell, said in a Tuesday morning note. She signaled that job openings were falling, while many businesses were delaying recruitment and investment decisions until November’s Autumn Budget.

“This trend will be closely watched by Bank of England rate setters,” Hewson added. “Although markets aren’t pricing in a cut this week, this softening opens up the potential for one more rate cut this year.”

The British pound was last seen 0.3% higher against the U.S. dollar, trading at around $1.363, while U.K. government borrowing costs ticked marginally higher. 

Global markets are also keeping a close eye on talks in Spain after U.S. President Donald Trump said the U.S.-China trade negotiations were progressing well.

The U.K is meanwhile preparing for White House leader’s state visit. The U.S. president and his wife, Melania, arrive on Tuesday evening and will spend Wednesday at Windsor Castle with King Charles and Queen Camilla before holding talks with U.K. Prime Minister Keir Starmer on Thursday.

— CNBC’s Jeff Cox contributed to this article.