European equities traded mostly lower on Tuesday as higher oil prices and elevated government bond yields remained in focus, while investors awaited monetary policy decisions from several major central banks.
The UK’s FTSE 100 fell 0.4%, France’s CAC 40 declined 0.3% and Germany’s DAX was down 0.1%.
Banking stocks were among the sectors trading lower as investors assessed the potential inflation implications of higher energy prices amid continued tensions in the Middle East.
Central Bank Decisions in Focus
Investors were also awaiting monetary policy decisions from the US Federal Reserve, Bank of England and Bank of Japan this week, with inflation and interest-rate expectations remaining a focus for markets.
The British pound extended its decline from the previous session following the release of UK labour-market data.
Figures from the Office for National Statistics showed job vacancies had fallen to a four-year low, while wage growth moderated over the summer.
Deutz Falls After Capital Increase
Among individual stocks, German engine manufacturer Deutz (TG:DEZ) moved lower after completing a capital increase.
In London, City of London Investment Group (LSE:CLIG) shares advanced after the asset manager reported increases in funds under management, fees and earnings for 2026.
Kier Group (LSE:KIE) also moved higher after the infrastructure and construction company reported its FY2026 results and raised its guidance for FY2027.
Market attention remains focused on energy prices, bond yields and the upcoming central bank decisions as investors assess the outlook for inflation and interest rates.
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