European stocks traded mixed on Tuesday as investors weighed ongoing geopolitical tensions and concerns over U.S. monetary policy. The pan-European STOXX 600 was broadly flat, with major regional indices moving in different directions.
Market sentiment was shaped by developments in Iran and renewed focus on the independence of the U.S. Federal Reserve following news of an investigation into Fed Chair Jerome Powell. Investors remain cautious amid fears of potential political pressure on the central bank.
Among individual stocks, shares of Danish offshore wind developer Ørsted rose after a U.S. court allowed work to resume on a major project, while UBS edged higher following reports of a planned leadership transition.
Elsewhere, Asian markets traded higher, while U.S. stock futures slipped slightly as investors awaited key U.S. inflation data and major bank earnings reports.
