FRANKFURT (dpa-AFX) - The Stoxx Europe 600 Basic Resources was the weakest European sector index on Tuesday. In addition to the mining group Rio Tinto, whose production outlook was disappointing, steel stocks in particular were under pressure.

Salzgitter AG fell by around 6 percent to a low since 2020 and Thyssenkrupp fell by around 2 percent. The copper group Aurubis lost more than three percent. In his outlook for the reporting season, analyst Dominic O'Kane from the bank JPMorgan prepared investors for a weak outlook in particular. He is particularly pessimistic about Salzgitter and Sweden's SSAB in the short term and therefore gave them the "Negative Catalyst Watch" stamp.

According to the expert, weak demand for steel in Germany means a headwind for profits in the current and coming year. He massively cut his operating earnings estimates and is now up to 22% below consensus. He therefore fears corrections and also high cash consumption.

The Stoxx Europe 600 Basic Resources is currently testing its exponential 200-day line again. This weighted average price is still providing support in the chart. Over the year as a whole, the economically sensitive sector is now slightly down, having gained 9 percent in May./ag/mis/jha/