European bourses tracked moderately lower midday Tuesday as traders await clarity from Washington on evolving international trade policies while weighing the ongoing impact of the Russian-Ukraine war. Property and oil sectors gained traction, while food and retail stocks presented a lagging performance. Investors also eyed Wall Street futures signaling a green opening, yet there were already indicators of mostly lower closes from overnight trading sessions on Asian exchanges. In important economic news, it was highlighted that the European Union is currently spending less than 2% of its gross domestic product (GDP) on defense.
However, a call to action has been made by European Commission President Ursula von der Leyen during her address to the European Parliament on Tuesday, stressing the need for the EU to ramp up defense spending to more than 3%. At the midday session, the pan-continental Stoxx Europe 600 Index experienced a slight dip of 0.2%.
Within this index, the Stoxx Europe 600 Technology Index saw a modest increase of 0.1%, while the Stoxx 600 Banks Index lost 0.1%. Specifically, the Stoxx Europe 600 Oil and Gas Index recorded a rise of 1%, contrasting with a decline of 0.9% in the Stoxx 600 Europe Food and Beverage Index. Turning our attention to individual country indexes, Germany's DAX registered an increase of 0.1%, while London's FTSE 100 faced a decline of 0.2%.
The CAC 40 in Paris remained largely unchanged, and Spain's IBEX 35 recorded a loss of 0.4%. On the bond market, yields on the benchmark 10-year German bonds were noted as rising, nearing 2.87%. In terms of commodities, front-month North Sea Brent crude-oil futures increased by 1.1%, now priced at $70.04 per barrel.
Additionally, the Euro Stoxx 50 volatility index decreased by 1.8% to 23.36, indicating potential above-average volatility for European stock markets in the upcoming 30 days. Such a reading implies a negative signal, as levels above 20 indicate choppier markets ahead while those below 20 suggest calmer conditions..