European stock markets edged lower on Tuesday, weighed down by uncertainty surrounding U.S. debt ceiling negotiations and disappointing European manufacturing sector surveys. The French manufacturing sector remained in the doldrums, while its services PMI release slipped from April’s levels. German manufacturing sector also retreated in May, with its PMI falling to 42.9 from 44.5.
U.S. President Joe Biden and House Speaker Kevin McCarthy ended discussions late Monday with no agreement on how to raise the U.S. government’s $31.4 trillion debt ceiling. Julius Baer (SIX:BAER) stock fell 8% after the Swiss wealth manager managed to report only modest money inflows after a slow start to the year.
Oil prices stabilized Tuesday, with the debt ceiling uncertainty hitting risk sentiment even as the U.S. driving season draws nearer. U.S. crude futures traded largely flat at $72.06 a barrel, while the Brent contract was flat at $76.00. Gold futures fell 0.9% to $1,958.95/oz, while EUR/USD traded 0.2% lower at 1.0794.