European markets closed slightly higher on Tuesday, with most sectors in positive territory despite mixed performances from major bourses. Autos stocks led the gains, up 1.4%, while telecoms stocks rose 1.2%.
In other news, oil prices dipped as energy market participants digested U.S. data indicating sticky inflation. Brent crude futures fell 1.3% to $82.29 per barrel, while U.S. West Texas Intermediate futures slipped 1.5% to $77.97.
Auto stocks traded 1.2% higher, with Sweden’s Volvo Car leading the gains at over 6%. Meanwhile, French companies Valeo and Forvia saw increases of 5.5% and 4.7%, respectively.
Klarna, a Swedish fintech company, secured investor approval for a new U.K. holding company, a move seen as a step toward an eventual initial public offering. The company has not yet announced a timeline for the IPO.
On the flip side, shares of Spanish pharmaceutical company Grifols fell over 5% after a report from short seller Gotham City Research accused the company of improper fund movements.
Overall, the markets are experiencing a “Goldilocks-style rally,” according to HSBC, with equities rebounding and moving past recent pullbacks. Analysts are optimistic about the outlook for U.S. growth and large-cap stocks.
In the U.K., the unemployment rate ticked up slightly to 4.3%, while wages excluding bonuses increased by a stronger-than-expected 6.0%.
Looking ahead, European markets are expected to open higher on Thursday, with earnings reports from companies like Swiss Re, Zurich Insurance, Siemens, and Deutsche Telekom on the horizon.
