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
fell 0.4% to 390.30, setting it on track for its lowest
close in a week.
Heavyweight Swiss drugmaker Roche Holding AG
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.
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
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
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
lost 0.5% to 5,284.59, while the U.K.’s FTSE 100
gave up 0.2% to 7,509.35.
Stock movers: EasyJet PLC
added 1% after the budget airline said passenger traffic
rose 9.5% in May.
In the same industry, shares of Deutsche Lufthansa AG
picked up 2% after HSBC reportedly lifted the airline to
buy from hold.
On a more downbeat note, shares of Burberry Group PLC
fell 3% after HSBC cut its rating on the
luxury goods company to reduce from hold, according to media