Investing.com - European markets edged higher in cautious trade on Tuesday, ahead of euro zone inflation data, while U.S. political tensions resurfaced and investors eyed the Federal Reserve's upcoming policy meeting.
The EURO STOXX 50 rose 0.22%, France’s CAC 40 inched 0.01% higher and Spain's IBEX 35 was up 0.25% by 04:30 a.m. ET (08:30 GMT). Trade remained subdued with Germany's stock market closed for a holiday.
Markets were jittery after U.S. investigators probing Russian interference in the 2016 presiential election charged President Donald Trump's former campaign manager, Paul Manafort, and another aide, Rick Gates, with money laundering on Monday.
In Europe, investors continued to digest Catalonia’s declaration of independence from Madrid on Friday. The move prompted Spain’s prime minister to sack the Catalan government and call elections next month.
However, tensions persisted as Spain's state prosecutor called for rebellion, sedition and embezzlement charges to be brought against Catalonia's leaders.
Financial stocks were broadly lower, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) tumbled 1.08% and 3.01% respectively. BNP Paribas earlier reported a 1.8% decline in third-quarter revenues to €10.4 billion, compared to the year before.
Among peripheral lenders, Italy's Unicredit (MI:CRDI) dropped 0.48%, while Spain's Banco Santander (MC:SAN) fell 0.26%.
Elsewhere, Airbus Group (PA:AIR) surged 2.83% after the aerospace and defense major said on Tuesday that its third-quarter net income increased significantly.
In London, FTSE 100 rose 0.21%, boosted by BP (LON:BP), whose shares surged 3.11% after the oil major reported better than expected third-quarter earnings.
The company also announced plans to buy back shares in order to try and limit the impact of its scrip dividend program.
Ryanair Holdings PLC (LON:RYA) added to gains, with shares up 4.55% after the airliner reported profits of £1.14 billion in the six months to the end of September.
Meanwhile, mining stocks were mostly lower on the commodity-heavy index. Shares in Rio Tinto (LON:RIO) slid 0.32% and Fresnillo (LON:FRES) dropped 0.52%, while rival company Glencore (LON:GLEN) tumbled 0.97%.
Financial stocks were also on the downside, as HSBC Holdings (LON:HSBA) edged down 0.20% and Lloyds Banking (LON:LLOY) slid 0.35%, while the Royal Bank of Scotland (LON:RBS) retreated 0.42%. Barclays (LON:BARC) overperformed however, with shares up 0.16%.
In the U.S., equity markets pointed to a steady to higher open. The Dow Jones Industrial Average futures pointed to a 0.07% uptick, S&P 500 futures signaled a 0.12% gain, while the Nasdaq 100 futures indicated a 0.22% rise.