European Stocks Rise Despite Policy Uncertainty and Retail Woes

European stocks overcame early losses to close slightly higher as gains in the mining sector balanced out weaknesses in retail. Investors remained wary about potential U.S. tariffs and monetary policy shifts under President-elect Donald Trump, while bond markets experienced volatility amid high yields.

European stocks nudged upwards on Thursday, with mining sector gains offsetting losses in retail. Early trading saw the pan-European STOXX 600 rise by 0.1% after an initial drop of 0.5%, as investors grappled with persistent economic uncertainties.

Concerns about rising inflation, dwindling hopes of interest rate cuts, and looming U.S. policies under President-elect Donald Trump have spiked bond yields globally. Speculation about Trump declaring a national economic emergency to enforce universal tariffs dampened market sentiment further.

Retail took a hit, with British discount retailer B&M's forecast cut causing a ripple effect across other stores. Meanwhile, a surge in oil and gas sectors helped stabilize the market amid a day of lighter trading volume, with U.S. markets shut for a national day of mourning for former President Jimmy Carter.

(With inputs from agencies.)