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By Emily Horton

Downbeat U.S. earnings help erode earlier gains

European markets gave up gains on Tuesday, after Chinese government officials outlined plans to boost the country's sluggish economy.

In the U.K., politicians are preparing to vote on Prime Minister Theresa May's contentious agreement for leaving the European Union in March.

How are the markets trading?

Most of Europe's major indexes started the day higher, but were lower by the afternoon, with the Stoxx Europe 600 moving to flat at 347.34, after finishing down 0.5% on Monday.

France's CAC 40 was flat at 4,764.57, the U.K.'s FTSE 100 was unchanged at 6,854.71 and Germany's DAX (DAX) slipped 0.2% to 10,828.21.

Italy's FTSE MIB index was the biggest regional loser on Monday, dropping 0.1% to 19,141.97.

The euro dropped to $1.1442, down 0.3% and the British pound last bought $1.2874, slightly higher than $1.2866 late Monday.

What is driving the markets?

In China, government officials have stepped up efforts (http://www.marketwatch.com/story/china-to-ramp-up-efforts-to-support-economy-2019-01-15) to spur economic growth amid signs the country's economic slowdown is deepening. Beijing intends to improve credit availability for smaller companies, accelerate infrastructure investment and cut taxes (http://www.marketwatch.com/story/china-to-slash-taxes-keep-currency-stable-to-offset-slowdown-2019-01-14).

The landmark vote over May's divisive agreement for Brexit is scheduled to take place at 10:30 p.m. local time in the U.K. on Tuesday (5:30 p.m Eastern). Most expect it to be rejected in the worst defeat for any U.K. prime minister in history (http://www.marketwatch.com/story/brexit-brief-uk-prime-minister-faces-historic-defeat-in-landmark-vote-2019-01-15), with more than 100 Conservative politicians currently opposed to its terms.

In the event that the deal is voted down, May will have three days to come up with an alternative for exiting the European Union on March 29. However, EU leaders have insisted that the deal already agreed is the only one on offer.

Read:May in last-ditch push for Brexit deal votes -- what the City of London is saying (https://www.fnlondon.com/articles/may-in-last-ditch-push-for-brexit-deal-votes-what-the-city-is-saying-20190115)

(https://www.fnlondon.com/articles/may-in-last-ditch-push-for-brexit-deal-votes-what-the-city-is-saying-20190115)Fresh data showed Germany's economy slowed sharply last year (http://www.marketwatch.com/story/germanys-economy-slowed-sharply-in-2018-2019-01-15), shaken by softening consumer spending at home and weakness in key export markets.

What stocks are active?

Portuguese food distributor Jeronimo Martins SGPS SA (JMT.LB) was the top gainer, adding over 7%

Italian banks were down on Tuesday, with Unione di Banche Italiane SpA (UBI.MI) dropping nearly 5% and Banco BPM SpA (BAMI.MI) losing more than 5% after a report in an Italian newspaper that the European Central Bank reportedly asked lenders to set aside more money for by 2016 (https://uk.reuters.com/article/idUKL8N1ZF2B6).

Meanwhile, manufacturer AMS AG (AMS.EB) rose by 3%.

(END) Dow Jones Newswires

January 15, 2019 09:26 ET (14:26 GMT)

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