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Europe plummets at close, hurt by Volkswagen, miners

Europe plummets at close, hurt by Volkswagen, minersEuropean stocks ended sharply lower on Tuesday, brought down by autos tanking, several major mining companies being downgraded and oil prices weighing on investor sentiment.

European stocks ended sharply lower on Tuesday, brought down by autos tanking, several major mining companies being downgraded and oil prices weighing on investor sentiment, CNBC reports.

The pan-European STOXX 600 finished the day significantly lower, down 3.1%.

London's FTSE 100 sunk around 2.8%, weighed down by Glencore shares and other miners that are heavily weighted in the index.

Both the French CAC and German DAX indexes tanked, ending down 3.4% and 3.8% respectively.

Three reasons why Volkswagen shares are a "buy," according to CNBC.

Tuesday was a rough day for individual stocks, with Volkswagen shares closing nearly 20% lower—following declines of 18% on Monday—on the news that it could face an $18 billion fine in the U.S. for rigging emission tests on its diesel vehicles.

The German carmaker said on Tuesday that it planned to set aside a provision of EUR 6.5 billion ($7.2 billion) and the company's U.S. head said it had "totally screwed up" by cheating on the tests.

Ripple effects were felt among European automakers, particularly after French Finance Minister Michel Sapin called for a Europe-wide probe into the industry.

Worst hit were shares of Volkswagen's high-end subsidiary, Porsche, which ended more than 17% lower. But France's Renault ended 7.1% down, while Peugeot Citroen plunged 8.8%.

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