European Stocks Edge Higher Amid U.S. Shutdown Concerns
European shares closed higher on Tuesday as energy stocks limited gains. STOXX 600 recorded consecutive monthly rises. Oil stocks dropped in anticipation of OPEC+ supply increase. Investors eye potential U.S. shutdown impacts. ECB and UK economic updates provided added market context.
In a surprising turn, European shares rebounded to close slightly higher on Tuesday, sparked by gains in media and retail stocks, while energy stocks tempered overall gains. This comes as investors assess the potential ramifications of a looming U.S. government shutdown on global financial markets.
The pan-European STOXX 600 index celebrated its third straight session of gains and marked its strongest monthly showing since May, finishing 0.5% higher for the day. London's FTSE 100 also marked an intraday record, reflecting resilience across most sectors, with media stocks posting a 1.2% gain and retail stocks up 1.1%.
Conversely, the oil and gas sector fared poorly, plummeting 1.6% amid expectations of additional OPEC+ supply, which sent oil prices lower. Aside from sectoral performance, investor attention remains fixated on potential delays of critical U.S. jobs data due to political gridlock, which could introduce volatility to an already discerning market.
(With inputs from agencies.)
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