PARIS: European stocks edged lower on Tuesday as a slew of downbeat earnings and higher government bond yields outweighed gains in energy shares and slight easing of concerns about risks stemming from the Middle East conflict.
The pan-European STOXX 600 index slipped 0.1%, while the blue chip index ended flat.
US President Joe Biden is set to make a high stakes visit to Israel on Wednesday to show support for its war on Hamas.
“This just gives a picture of markets that is betting on the fact that this (conflict) isn’t going to get too much worse,” said Daniela Hathorn, senior market analyst at Capital.com.
“US diplomacy is going to play its part and it will remain as kind of a very controlled and localized issue that won’t impact greater markets.” Construction and materials led sectoral declines, down 0.9%.
The European Commission said it was carrying out unannounced antitrust inspections in the construction chemicals sector in several member states, where companies were suspected of anti-competitive behaviour.
Pressuring stocks, euro zone bond yields rose further after US retails sales beat estimates.
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