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Stock indices closed lower on a selloff in major government bonds. The yield on Germany's 10-year Bund rose to 0.73% on Tuesday. The yield on the 10-year Treasury note increased to 2.27% on Tuesday.
The Greek debt crisis remained in focus. Greece yesterday began the transfer of €750 million in loans to the International Monetary Fund (IMF). A payment deadline is today.
Greece has averted a possible default, but there are no reasons for optimism yet. Eurogroup said after yesterday's meeting that it will not unlock the €7.2 billion tranche of loans until the Greek government begins reforms agreed with its creditors. Athens is struggling to meet its payment obligations.
The Office for National Statistics (ONS) released its manufacturing industrial production figures for the U.K. on Tuesday. Manufacturing production in the U.K. rose 0.4% in March, exceeding expectations for a 0.3% gain, after a 0.5% increase in February. February's figure was revised up from a 0.4% rise.
Manufacturing output was driven by oil and gas extraction, which jumped 4.9% in March, the biggest rise since February 2014.
Industrial production in the U.K. climbed 0.5% in March, beating forecasts of a flat reading, after a 0.1% rise in February.
For the first quarter as a whole, industrial output was up 0.1%, driven by a 2.7% gain in the utilities sector, while manufacturing output rose 0.1%.
The National Institute of Economic and Social Research (NIESR) released its estimate of gross domestic product (GDP) for the U.K. on Tuesday. The GDP estimate rose by 0.4% in three months to April, after a 0.3% growth in three months to March.
The NIESR said that the weak economic growth in the first quarter was temporary, and it expects the U.K. economy to expand at 2.5% this year.
Indexes on the close:
Name Price Change Change %
FTSE 100 6,933.8 -96.05 -1.37 %
DAX 1,472.41 -200.94 -1.72 %
CAC 40 4,974.65 -53.22 -1.06 %
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