European stocks remained flat on Tuesday as gains in defence stocks balanced losses in the technology sector, which faced pressure from escalating U.S.-China tensions over semiconductor restrictions.
The pan-European STOXX 600 inched up 0.07% as of 0816 GMT. Technology stocks were the biggest laggards, dropping 0.9%, amid reports that the U.S. plans to tighten semiconductor export restrictions on China. Semiconductor giants STMicroelectronics and ASML slid 1.4% and 1.6%, respectively, while AI-exposed stocks Schneider Electric and Siemens Energy lost 1.3% and 2.2%.
Consumer goods leader Unilever saw its shares drop 3% after announcing CEO Hein Schumacher will step down, to be replaced by CFO Fernando Fernandez.
On the other hand, the European aerospace and defence sector surged over 1%, driven by reports that Germany’s potential new chancellor, Friedrich Merz, is in talks to approve €200 billion ($209.44 billion) in defence spending. German arms manufacturers Rheinmetall, Hensoldt, and Renk climbed 2.6%, 2.5%, and 6.1%, respectively.
Industrial conglomerate Thyssenkrupp soared 6% after its CEO confirmed plans for a shareholder meeting ahead of a warship division spin-off.
Investors remain cautious as geopolitical tensions and economic uncertainty continue to drive market fluctuations.


Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets
Gold Holds Near $4,275 as Rising Treasury Yields Fuel Fed Rate Hike Bets
Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens
U.S. Treasury Yields Surge as 30-Year Hits 22-Year High
Fed Unveils Stablecoin Rules Under GENIUS Act
Soybean Futures Slip as Traders Await Trump-Xi Trade Signals
Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth
China Agrees to Buy 20 Million Tons of U.S. Coal
UK PM Burnham to Unveil Economic Vision at Labour Conference
Germany’s 2026 Growth Outlook Strengthens on Fiscal Spending
Gold Prices Fall as Treasury Yields Rise on Fed Rate Hike Bets
Asian Currencies Mixed as Dollar Holds Near Two-Month High
Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets
Oil Prices Jump 3% as Houthi Attack Revives Supply Fears
Asian Stocks Fall as Surging Bond Yields Rattle Markets
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge
Fed Unveils Stablecoin Rules Under GENIUS Act 



