European equity markets traded slightly weaker on Tuesday, pressured by mounting political uncertainty in France and disappointing factory order data from Germany.
The latest government reshuffle in France sent ripples through European bond markets, pushing the German 10-year bund yield—the eurozone’s key benchmark—up 1.4 basis points to 2.73%.
Fresh data from Destatis showed that German factory orders dropped 0.8% in August, following a 2.7% decline in July, defying expectations for a 1.2% rebound. Excluding major bulk orders, new orders were down 3.3% month-over-month, underscoring persistent weakness in Europe’s largest industrial economy.
By mid-morning, the DAX Index in Germany was up 0.2%, while France’s CAC 40 and the UK’s FTSE 100 both gained 0.3%, signaling limited momentum across the region.
Sector-wise, healthcare stocks underperformed, with Germany’s Bayer (TG:BAYN) plunging 4% and Denmark’s Novo Nordisk (NYSE:NVO) sliding 2%.
In contrast, energy shares provided some support. Shell (LSE:SHEL) climbed nearly 2% in London after issuing an upbeat third-quarter 2025 outlook, while Imperial Brands (LSE:IMB) advanced 3% following the announcement of a £1.45 billion ($1.95 billion) share buyback.
Among other notable movers, Skanska (USOTC:SKBSY) jumped 4.5% and wind turbine maker Nordex (BIT:1NDX) rose 1% after securing new contract wins.
Meanwhile, Great Portland Estates (LSE:GPE) slipped 1% despite reporting strong leasing activity during the first half of its fiscal year, and discount retailer B&M European Value Retail (LSE:BME) dropped 10% following a profit warning.
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