LONDON: European stock markets ended lower on Tuesday , giving up early gains made after Beijing appeared to hold fire in its conflict with the US over the level of its currency.
On Tuesday, investors initially relaxed a bit after the People's Bank of China fixed the yuan at a higher level against the dollar than analysts had expected, signalling a degree of restraint after Washington slapped the"currency manipulator" label on China. In London, raising prospects for a withdrawal from the European Union without a negotiated agreement also weighed on sentiment.After markets recently reached record levels in the US, analyst Fawad Razaqzada at Forex.com suggested that"it is possible that a lot of people who bought near those record levels may use any rebounds as opportunities to close out their losing trades at breakeven or a small loss.