European equity markets traded largely unchanged to marginally higher on Tuesday, as investors monitored geopolitical developments and prepared for a series of key economic releases from the United States.
Defense-related stocks mostly declined, reflecting a perceived easing of tensions surrounding Iran and Russia.
Sterling weakened against both the euro and the dollar after softer U.K. labor market figures reinforced expectations that the Bank of England could move to cut interest rates as early as March.
Official statistics showed the U.K. unemployment rate climbed to 5.2% in the fourth quarter, up from 5.1% in the previous period.
Average earnings growth, including bonuses, came in at 4.2% year-on-year, below forecasts of 4.6%. In January, the number of payroll employees fell by 11,000 month-on-month to 30.3 million.
In Germany, data from Destatis confirmed that consumer price inflation accelerated to 2.1% in January from 1.8% in December, driven by higher food and services costs.
The EU-harmonized inflation rate also rose to 2.1% from 2.0% the previous month, in line with the preliminary estimate released on January 30.
By mid-session, London’s FTSE 100 was up 0.3%, while Germany’s DAX edged 0.1% higher. France’s CAC 40 hovered around flat territory.
In corporate news, GSK (LSE:GSK) gained ground in London after announcing a £2 billion share repurchase program.
Mining group BHP (LSE:BHP) also moved higher after reporting earnings at the top end of analysts’ projections.
In contrast, copper producer Antofagasta (LSE:ANTO) fell despite posting record annual profits.
Swiss biopharmaceutical firm Basilea Pharmaceutica (TG:PK5) also declined after reporting lower full-year earnings.
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