European shares subdued as energy counters gains in financials

It had climbed more than 3% last week amid robust earnings and signs of an end to rate hikes by major central banks. Energy stocks led sectoral declines with a 1.2% fall, tracking a more than 1% drop in crude oil prices. The stock was up 4.3%, aiding a 1% rise in the financial services sector index.

European shares were subdued on Tuesday as a drag in energy stocks offset gains in financials, while Watches of Switzerland jumped to a more than one-month high following a strong second-quarter update.

The pan-European STOXX 600 was flat by 0815 GMT, having snapped a five-day gaining streak on Monday. It had climbed more than 3% last week amid robust earnings and signs of an end to rate hikes by major central banks.

Energy stocks led sectoral declines with a 1.2% fall, tracking a more than 1% drop in crude oil prices. Watches of Switzerland soared 12.2% to the top of the STOXX 600 as it expects to more than double its annual profit by 2028.

UBS Group posted a $785 million loss in the third quarter, while signalling that its core wealth business is stabilising. The stock was up 4.3%, aiding a 1% rise in the financial services sector index.