European stock markets inched higher in choppy trade on Tuesday, with ongoing budget wrangling between Democrats and Republicans in the U.S. over how to avert the “fiscal cliff” keeping investors on the sidelines.
The Stoxx Europe 600 index moved 0.2% higher to 276.57.
Shares of Wolseley PLC fell 1.2%, after the distributor of heating and plumbing products reported a rise in first-quarter revenue, but said further restructuring charges are expected.
Pointing in a different direction, shares of TUI Travel PLC added 1.6%. The travel company reported a 40% increase in pretax profit for the year ended Sept. 30.
Elsewhere, the U.S. budget negotiations weighed on investors’ mind, as the two parties has made little progress in reaching a deal before a raft of automatic tax hikes and spending cuts will take effect in the new year- known as the fiscal cliff.
House Republicans on Monday offered a plan that would raise $800 billion in new revenue from taxes, which is about half of what President Barack Obama earlier has proposed. The White House dismissed the plan, saying it represented nothing new.
Sluggish U.S. manufacturing data released during late European trade the prior day further weighed on sentiment in Europe, as a gauge of factory activity unexpectedly contracted in November.
U.S. stock futures pointed to a lower open on Wall Street.
Among notable movers on European stock markets, oil firms added pressure, tracking a loss for oil prices.
Shares of BP PLC gave up 0.6% in London, while shares of Royal Dutch Shell PLC nudged 0.5% lower.
The FTSE 100 index lost 0.1% to 5,864.09.
In France, most stocks traded in positive territory with shares of Credit Agricole SA up 1.5%.
The CAC 40 index rose 0.3% to 3,576.98.
And in Germany, Deutsche Bank AG shares picked up 0.8% and Commerzbank AG added 1%.
The DAX 30 index was marginally higher at 7,438.31.
Marketwatch
