European stock markets closed the first session of the New Year solidly lower. In London, the Financial Times-Stock Exchange 100 index, which fell 1 point Friday, finished Tuesday's session with a loss of 47.80 points (-0.77%) to close at 6174.70. Banks and techs led the decline. The British 10-year bond yield fell 9.7 basis points to 4.785% as money shifted away from stocks and into fixed income in anticipation of easier monetary policy from the U.S.
In Germany, the DAX index, meanwhile, was off 120.07 points, or 1.87%, to 6,313.54 as the German Purchasing Managers Index fell to 54.0 in December from 55.4 in November. France's CAC 40 was down 127.52 points, or 2.15%, at 5,798.90 as French PMI fell to 52.8 in December from 54.1 in November.
Markets in Japan were closed in observance of holidays. Hong Kong's Hang Seng index, meanwhile, ended off 225.59 points, or 1.49%, at 14,869.94.