LVMH and Kering shares fall as European markets retreat from China stimulus rally

European markets edged lower on Tuesday as regional sentiment worsened after a shaky start to the week, with investors closely watching the Middle East conflict and its potential impact on oil markets, supply chains and the global economy.

Pan-European Stoxx 600 All sectors and major markets were 0.81% lower in early deals with trading in the red. Mining stocks fell 3.65% while household goods fell 2.1%.

European luxury stocks with powerhouse brands LVMH And dryKey Chinese markets retreated broadly as sentiment turned sour over a potential demand boost from stimulus measures.

Elsewhere overnight, US stock futures were little changed after a losing day on Wall Street on Monday as rising oil prices and bond yields weighed on markets.

In the Asia-Pacific region, an early rally for Chinese markets provided few details on further stimulus after a briefing by the country's National Development and Reform Commission.

Earlier, mainland China's CSI 300 index skyrocketed more than 10% as it returned from the Golden Week holiday, but the index rallied later in the session.

Key releases for markets this week include US Federal Reserve minutes and German trade on Wednesday, US inflation on Thursday and UK economic growth on Friday.