Europe's retail stocks index fell to more than a one-weel low on Tuesday after Target Corp issued a weak quarterly margin forecast for the second time in less than a month.

The European retail index tanked almost 2 percentage points in less than 20 minutes after the warning. The drop in European retail shares weighed on the broader market with the benchmark index extending losses to stand 0.7% down on the day.

The U.S. retailer said it would mark down prices in the second quarter, cancel orders to optimize inventory, speed up parts of its supply chain and prioritize categories such as food and household essentials. (Reporting by Danilo Masoni; Writing by Saikat Chatterjee)