European stocks were muted as investors looked ahead to a slew of economic data for clues on the path of interest rates. Defense stocks rebounded after Russia and Ukraine traded airstrikes overnight.
The Stoxx Europe 600 Index was little changed as of 9:19 a.m. in Paris. A basket of defense stocks rose 1.7%, following heavy air raids on Kyiv and assaults on southern Russian areas. A US official was due to meet a Russian delegation in Abu Dhabi as President Donald Trump cited progress on his peace proposal.
Mining and energy shares outperformed, while autos as well as travel and leisure sectors lagged.
European stocks gained on Monday following dovish Federal Reserve comments, as Governor Christopher Waller said he’s advocating an interest-rate cut in December. Traders will be watching a slew of retail sales and consumer confidence data later today for signs on where the monetary policy is moving next.
“The Fed has a tradition of giving visibility to investors when it comes to interest rates decision and the volatility that we are witnessing currently is a reflection of its absence,” Raphael Thuin, head of capital market strategies at Tikehau Capital. “The lack of visibility on the Fed’s next move could be a big risk this year and for 2026 too.”
In individual stocks, Kingfisher Plc jumped as much as 6.9% after the home improvement company boosted profit guidance.
For more on equity markets:
You want more news on this market? Click here for a curated First Word channel of actionable news from Bloomberg and select sources. It can be customized to your preferences by clicking into Actions on the toolbar or hitting the HELP key for assistance. To subscribe to a daily list of European analyst rating changes, click here.
This article was generated from an automated news agency feed without modifications to text.
