European stocks saw a slight dip on Tuesday as shares in major energy and healthcare companies lost value. Investors were also considering the potential effects of a US government shutdown, which would likely postpone the release of the key monthly jobs report.
The main pan-European index, the STOXX 600, slipped 0.2% but is still on track for its third straight monthly gain and a quarterly increase of over 2%.
The losses were led by oil and gas stocks, such as TotalEnergies and BP, which fell as oil prices declined, and by healthcare stocks, including Novo Nordisk and AstraZeneca.
This caution was fueled by comments from US Vice President JD Vance that a government shutdown was probable, which would delay crucial jobs data. In corporate news, Britain’s online fashion retailer ASOS saw its shares plunge 11.4% after it warned its annual revenue would miss market expectations.
On the FX front, the US dollar index continued its decline today, falling by around 0.2%.
The Australian dollar saw a notable gain of 0.49% after the Reserve Bank of Australia decided, as anticipated, to keep interest rates steady. The RBA’s accompanying comments suggested that inflation might be higher than forecasted for the third quarter and that the economic outlook remains uncertain.
Meanwhile, the euro was slightly lower and the British pound was also down. The Japanese yen weakened somewhat against the US dollar as investors digested the Bank of Japan’s summary of its September policy meeting, which indicated that central bank members had debated the possibility of a near-term rate hike.
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