European Shares Stay Balanced Amid Fed Watch

European shares held steady as the U.S. Federal Reserve's policy meeting loomed, with financial and industrial gains providing support. While regional indexes climbed, investor focus remained on the expected Fed rate cut and U.S. job market insight. Thyssenkrupp and British American Tobacco saw notable declines.

European shares remained stable on Tuesday as investors exercised caution ahead of the U.S. Federal Reserve's upcoming policy meeting, which was set to begin later that day. Gains in the financial and industrial sectors lent support to the STOXX 600 index.

The pan-European STOXX 600 index edged up 0.1% to 579.14 by 0810 GMT, with German and Spanish benchmarks rising 0.3% each. Financial services shares led the charge, increasing by 0.7%, bolstered by rating upgrades for Man Group and EQT by J.P.Morgan, which saw 4.4% and 2.7% gains respectively.

Market participants remained vigilant as the Federal Reserve's rate decision, anticipated to result in a 25-basis-point cut, approached on Wednesday. With additional attention on the upcoming U.S. jobs report, investors sought further insights into the health of America's labor market.

Among individual stocks, Thyssenkrupp plunged 12.6% following its forecast of a significant net loss by 2026, and British American Tobacco saw a 4.3% decline after predicting its 2026 results would hit the lower range of expectations.

(With inputs from agencies.)