European Markets Tread Water Amid Tech Concerns and Trade War Fears

European shares mostly remained flat on Tuesday as investors paused amid global tech sector concerns and looming trade war fears risking U.S. economic growth. The STOXX 600 saw a nominal drop while markets focused on sectoral shifts, including gains in automobiles and declines in travel and leisure.

European shares remained mostly stagnant as investors chose to pause and reassess after a global tech downturn ignited fears of a trade war impacting U.S. economic growth. This cautious stance followed steep selling in the previous session.

As of 0814 GMT, the STOXX 600 dipped slightly by 0.07%, recovering from its near-month-low slump on Monday. Notably, the Nasdaq index shed 4%, as the travel and leisure sector recorded a 1.6% drop, coupled with a 1.2% decline in healthcare.

Banks experienced a 0.9% decrease, with Germany's Greens challenging the proposed military and infrastructure budget without climate and economic concessions. Meanwhile, Volkswagen and Redcare Pharmacy exhibited notable gains, reporting optimistic future profit margins and financial results, respectively, boosting the automobiles and components index by 0.9%.

(With inputs from agencies.)