European stocks close lower as traders monitor Sintra central bank gathering

European stocks are largely in the red on Tuesday afternoon, with the Stoxx 600 down 0.55%.

German industrial and defense firm Thyssenkrupp is among the worst performers, losing 5.4%.

It comes after Norway’s biggest private pension fund, KLP, announced Monday it would exclude the firm — as well as U.S. truck manufacturer Oshkosh Corporation — from its portfolio over the companies’ “sales of weapons to the Israeli military.”

KLP said it had assessed the companies and “engaged in dialogue” with them following the publication of a UN report a year ago identifying the suppliers of weapons or equipment to the Israeli Defence Force (IDF) being used in Gaza.

“Our conclusion is that the companies Oshkosh and ThyssenKrupp are contravening our responsible investment guidelines,” Kiran Aziz, head of responsible investments at KLP, said in a statement.

Until June 16, KLP owned shares worth around 10 million Norwegian kroner (roughly $1 million) in Thyssenkrupp, the pension fund said.

CNBC has contacted Thyssenkrupp and Oshkosh for comment.

Thyssenkrupp’s share price has more than doubled in the year to date as investors bet on higher European defense spending in the region, particularly in Germany.