European Stocks Drift Ahead of Crucial US Jobs Data

European stocks struggled for clear direction as investors remained cautious, awaiting significant economic data ahead of the U.S. jobs report. German stocks hit record highs, while the pan-European STOXX 600 index stayed flat. Focus is on US payroll stats and ECB policymakers' comments influencing future market trends.

European stocks experienced mixed results on Tuesday, with investors showing caution before the release of crucial economic data and the anticipated U.S. jobs report on Friday. German stocks slightly rose, setting new records.

The pan-European STOXX 600 index remained flat, bolstered by a positive trend in German stocks, which climbed by 0.2% amid easing inflation concerns. Daniela Hathorn from Capital.com noted a mix of indecision and rebalancing in the European markets.

Rolls-Royce led gains in the industrial sector, surging 4.4% after resolving an engine issue at Cathay Pacific. Investors await comments from European Central Bank policymakers and U.S. non-farm payroll data, both pivotal for future market direction and potential rate cuts.

(With inputs from agencies.)