18.08.202607:28:08UTC+00European Stocks Fall Further on Tuesday

European stocks edged lower on Tuesday, with both the Stoxx 50 and Stoxx 600 slipping about 0.3% as markets continued to retreat from recent record highs. Risk appetite weakened after the expiration of the US-Iran ceasefire and signals from Tehran of a more assertive military posture, stoking concerns over renewed instability in the Middle East.

Brent crude advanced toward $91 a barrel, heightening worries that rising energy costs could reignite inflationary pressures. At the same time, climbing government bond yields weighed further on equity valuations. Basic resources stocks declined in tandem with softer gold prices, while energy shares outperformed on the back of higher crude.

Among major names, ASML lost around 1.5% and Siemens slipped 0.9%. In the UK, the unemployment rate held at 4.9% in the three months to June, slightly above economists’ expectations, while payroll employment increased by 83,000, undershooting forecasts. Average weekly earnings rose 4.1% year-on-year. Investors are now looking ahead to the release of ZEW economic sentiment surveys for Germany and the wider Euro Area.