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European stocks set for 1-week low as caution sets in

European stocks moved a leg lower on Tuesday, as investors
erred on the side of caution ahead of potentially market-moving
events later this week, including the U.K.’s general election
and a European Central Bank meeting.

The Stoxx Europe 600 index

SXXP, -0.37%

 fell 0.4% to 390.30, setting it on track for its lowest
close in a week.

Heavyweight Swiss drugmaker Roche Holding AG

ROG, -4.19%


 weighed the most on the pan-European
benchmark, falling 4.3% after a clinical trial showed only a
modest benefit to women who took the company’s cancer drug

More broadly, investors took a wary approach as they counted
down to big event risks on Thursday. That day, British voters
head to the polls in a general election that is looking
increasingly difficult to call, sparking concerns about how
Brexit negotiations will pan out.

Read: 5 things to know about the U.K. general
election this week

Also read: U.K. election — the worst, best and most
likely scenarios for stocks worldwide

Also on Thursday, the ECB gathers for its policy-setting
meeting, at which analysts say the forward guidance on rates
might be tweaked. Later that day in the U.S., former Federal
Bureau of Investigation Director James Comey will testify to a Senate panel about alleged
Russian interference in U.S. affairs

“Essentially, we brace for a volatile session on Thursday and
Friday as at least one of those crucial events could trigger
sharp moves in the markets,” analysts at Rabobank said in a

The euro

EURUSD, -0.0711%

 was largely flat in Tuesday’s trade, fetching $1.1253,
compared with $1.1256 late Monday in New York.

Individual indexes: Germany’s DAX 30 index

DAX, -0.38%

 fell 0.4% to 12,767.75. The benchmark was closed on
Monday in observance of the Whit Monday holiday.

France’s CAC 40 index

PX1, -0.35%

 lost 0.5% to 5,284.59, while the U.K.’s FTSE 100

UKX, -0.20%

 gave up 0.2% to 7,509.35.

Stock movers: EasyJet PLC

EZJ, +1.12%

 added 1% after the budget airline said passenger traffic
rose 9.5% in May.

In the same industry, shares of Deutsche Lufthansa AG

LHA, +2.51%

 picked up 2% after HSBC reportedly lifted the airline to
buy from hold.

On a more downbeat note, shares of Burberry Group PLC

BRBY, -3.04%


 fell 3% after HSBC cut its rating on the
luxury goods company to reduce from hold, according to media

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