FX.co ★ European Stocks Waver

On Tuesday afternoon, the STOXX 50 and STOXX 600 indices remained close to unchanged, recovering from earlier declines as investors exercised caution amid the looming threat of a U.S. government shutdown and President Trump's announcement of new tariffs on lumber and timber. Recent inflation data had minimal impact on adjusting the European Central Bank's policy expectations, reinforcing its cautious approach towards further rate reductions. Germany’s inflation rate increased more than anticipated to 2.4% in September, while France’s rate rose to 1.2%, slightly missing the forecast of 1.3%. Meanwhile, Italy's inflation unexpectedly held steady at 1.6%. In terms of sector performance, energy and healthcare stocks lagged, whereas banking stocks saw a predominantly upward trend. Throughout September, the STOXX 50 has seen an increase of 2.9%, with the STOXX 600 rising by 1%. For the third quarter, the STOXX 50 experienced a 3.9% growth, while the STOXX 600 increased by 2.6%.