2017.10.1721:13:00UTC+00European Markets Drop; Eurozone Political Developments Eyed

European markets declined on Tuesday, as investors focused on recent political developments in the eurozone. Traders also priced in a mixed bag of earnings reports, with healthcare stocks and Merlin Entertainments the hardest hit following the results.

The pan-European Stoxx 600 fell 0.25 percent, with most sectors and major bourses in the red.

Madrid's IBEX finished a choppy day by climbing 0.4 percent, even as uncertainty persists surrounding the Catalan region's stance on officially declaring independence from Spain.

Travel and leisure stocks were among the worst performers, declining 0.6 percent amid a fall in summer trade.

Britain's Merlin Entertainments said a "spate of terror attacks" in the U.K. and unfavorable weather over its key summer trading period had pulled down the business this year. Shares of Merlin Entertainments plunged over 15 percent on the news.

Among those that underperformed on Tuesday were healthcare stocks, as Sartorius dropped 7.6% after the German medical products company trimmed its 2017 outlook.

Shares of Mediclinic International tumbled 4.4 percent. The U.K. private hospital operator cautioned that earnings could be weighed down by weak performance in its Africa and Middle Eastern operations.

Credit Suisse gained 1.2 percent as Swiss hedge fund RBR Capital Advisors said it purchased a stake in the Swiss lender. A local press report said RBR is seeking to break up Credit Suisse.

U.K.-listed banks were also higher as prospects for a U.K. rate hike increased after inflation picked-up to 3 percent in September. That was the highest rate since early 2012.