European Stocks Close On Mixed Note

(RTTNews) - European stocks turned in a mixed performance on Tuesday with investors mostly making cautious moves as they awaited the outcome of the ongoing Sino-U.S. trade talks in London.

German stocks are drifting lower on Tuesday as investors await the outcome of high-level U.S. - China trade talks in London. The negotiations, which commenced on Monday, have not yielded any positive news so far.

U.S. Commerce Secretary Howard Lutnik said talks are going well and are expected to go all day Tuesday.

The mood remained cautious in most of the markets amid a lack of any significant economic data or earnings news from the region.

The pan European Stoxx 600 edged down 0.1%. The U.K.'s FTSE 100 gained 0.44%, while Germany's DAX and France's CAC 40 closed down 0.1% and 0.2%, respectively. Switzerland's SMI ended 0.12% down.

Among other markets in Europe, Austria, Czech Republic, Iceland and Russia ended higher.

Belgium, Denmark, Finland, Greece, Ireland, Netherlands, Norway, Poland, Portugal and Turkiye closed higher. Spain and Sweden ended flat.

In the German market, Porsche rallied nearly 3.5%. BASF gained about 2.8%, while Infineon, Brenntag, Puma, RWE, Volkswagen, Daimler Truck Holding, BMW, Mercedes-Benz and Bayer gained 1 to 1.6%.

Rheinmetall tumbled about 5.5%. Siemens Energy closed down 3.7%. Munich RE, Deutsche Telekom, Zalando, Hannover Rueck, Heidelberg Materials, MTU Aero Engines and Deutsche Boerse lost 1 to 2.2%.

In the French market, Stellantis gained about 5%. The company has initiated a voluntary redundancy scheme at its Mirafiori plant in Turin, targeting 610 workers as part of a broader workforce adjustment strategy across its Italian operations.

The scheme, which has been introduced at other facilities in Italy, is designed to facilitate early retirement and alternative career opportunities for employees, according to a Reuters report.

STMicroElectronics climbed 4.7%. Capgemini, Publicis Groupe, Unibail Rodamco, TotalEnergies, Kering and Renault gained 2 to 2.5%.

Thales ended 3.7% down. Credit Agricole, Societe Generale, BNP Paribas, Edenred and Safran lost 2 to 3.1%.

In the UK market, Persimmon, Barratt Redrow and Taylor Wimpey climbed 5.95%, 5.62% and 4.6%, respectively. Marks & Spencer, Shell, BP and Segro closed higher by 3 to 4%.

Croda International, Auto Trader Group, Berkeley Group Holdings, Howden Joinery, WPP, Bunzl, Unite Group, Severn Trent, Rentokil Initial, Centrica and Land Securities also closed with strong gains.

Diageo, which rose sharply in early trades, pared most of its gains as the day progressed. The stock moved up on reports the company may sell part or all of IPL Team Royal Challengers Bengaluru, which is owns through United Spirits.

In economic news, Data from the Office for National Statistics revealed that the UK unemployment rate rose slightly in the three months to April period and wage growth softened as the rise in social security contribution and the minimum wage started to weigh on the labor market activity.

The ILO jobless rate rose to 4.6% in the three months to April, as expected, from 4.5% in the three months to March. Average earnings excluding bonuses climbed 5.2% from a year ago but slower than the forecast of 5.5%.

Including bonuses, average earnings grew at a slower pace of 5.3% in the three months to April from the previous year. The rate came in line with expectations.

British Chambers of Commerce Deputy Director Public Policy Jane Gratton said the increase in employment costs for business appears to be starting to bite with today's data showing a rise in unemployment.

Gratton noted that the steep increase in national insurance and the national living wage have undoubtedly delivered a shock of businesses.

She noted that vacancies continued to decrease and wage growth continued to outpace inflation, adding further cost pressures for firms already facing rising overheads.