FRANKFURT: European shares ended flat on Tuesday as investors stayed cautious going into the US Federal Reserve’s two-day policy meeting, while EssilorLuxottica slumped after Google unveiled plans to launch AI-powered glasses.
The pan-European STOXX 600 closed little changed at 578.11. Regional benchmarks were mixed, with Germany’s DAX up 0.5 percent and France’s CAC-40 down 0.7 percent.
Ray-Ban maker EssilorLuxottica dropped 5.6 percent - on track for its worst day since April 3 - after Google said it would launch artificial intelligence-enabled glasses in 2026 with Warby Parker.
The news weighed on other luxury stocks, including Kering and LVMH, which fell 2 percent and 1.4 percent, respectively. The broader luxury index led sectoral losses with a 1.8 percent decline.
Insurers were the biggest gainers, up 1.3 percent, while banks advanced 0.8 percent.
Defence stocks climbed after Bloomberg News reported that German lawmakers are set to approve procurement contracts worth a record 52 billion euros (USD60.5 billion) next week. Rheinmetall , RENK and Hensoldt gained between 3.6 percent and 5.9 percent, lifting the sector index 0.9 percent.
Markets remained focused on the Fed’s two-day policy meeting, which begins on Tuesday. The central bank is widely expected to cut rates by 25 basis points on Wednesday, but attention will centre on policymakers’ guidance for the path beyond December.
“It’s the biggest risk event of the week. It’s more about the detail... with regard to the dot plots, any changes to the projections, how many dissents,” said Daniela Hathorn, senior market analyst at Capital.com.
Among other stocks, Thyssenkrupp dropped 6.4 percent after the German conglomerate forecast a net loss of up to 800 million euros (USD931 million) in 2026.
Galp sank 14.6 percent - the day’s worst performer - after the Portuguese energy firm signed a deal handing TotalEnergies operatorship of the major Mopane discovery offshore Namibia.
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