Europe Markets Rise As Investors Weigh Economic, Geopolitical Outlook

The lights of Frankfurt am Main’s banking skyline glow in the last light of day.

Boris Roessler | Picture Alliance | Getty Images

LONDON — European markets were higher on Tuesday as investors weighed geopolitical risks and assessed the outlook for the global economy.

The pan-European Stoxx 600 was 0.22% higher at 10:23 a.m. London time, with all major regional indexes trading in the green. Sectors were mixed, with mining stocks adding 1.18% and autos gaining 1.08%, while retail stocks shed 0.39%.

European bourses had posted a mixed session on Monday when U.K. markets were closed for a national bank holiday.

Investors continued to weigh geopolitical risks after Israel and Hezbollah traded strikes over the weekend, raising fears about a wider conflict in the Middle East. The uncertainty sent oil prices higher on Monday, but gains pared back somewhat on Tuesday.

Brent crude futures were last down by 0.85% to $80.74 a barrel and U.S. West Texas Intermediate crude declined by 0.98% to $76.66 a barrel at 10:21 a.m. London time.

On the data front in Europe, Germany’s statistics office on Tuesday released a final reading of the country’s second-quarter gross domestic product, saying that it fell by 0.1% from the previous quarter. That was in line with the preliminary reading released in July.

Elsewhere, the British Retail Consortium on Tuesday said that shop prices in the U.K. fell into deflation territory for the first time in almost three years in August. Shop prices fell 0.3%, the industry body said, down from inflation of 0.2% in the previous month.

Also on Tuesday, Hungary’s central bank is set to announce its interest rate decision.