European Shares Stand Firm Amid Yield Pressures and Tariff Threats

European shares held steady on Tuesday despite rising bond yields and trade tension fears from U.S. President-elect Donald Trump's impending tariffs. STOXX 600 closed at 508.31 points, with healthcare and energy sectors as major drags, partially offset by gains in the automobile sector. Investors remain cautious amidst the economic and political uncertainty.

European shares ended Tuesday's trading session relatively unchanged as mounting bond yields continued to exert pressure on regional equities. Trade uncertainty also loomed with U.S. President-elect Donald Trump considering new tariffs, causing unease among investors.

The pan-European STOXX 600 closed at 508.31 points after dipping earlier in the session. German and Italian bond yields reached significant highs, and healthcare stocks suffered, dragging the index down by 1.6%. Meanwhile, the energy sector also declined, notably impacted by BP's forewarned profit hit due to reduced refining margins.

Despite these setbacks, gains in the automobile sector provided some balance. Euro zone banks experienced a 1.7% increase, and French index CAC 40 saw slight gains. Attention now turns to potential economic data and policy developments as Trump prepares to assume office.

(With inputs from agencies.)