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European stocks mixed; eurozone PMIs, inflation data in focus - European stock markets traded in a mixed fashion Tuesday, as investors awaited more regional economic data while assessing the outlook for central bank interest rate cuts.

At 03:15 ET (08:15 GMT), the DAX index in Germany traded 0.1% higher, the CAC 40 in France traded up 0.2%, while the FTSE 100 in the U.K. fell 0.4%.

Eurozone economic data in focus

European equity markets have started the new month on a cautious note after the strong gains in November, as downbeat economic data pointed to a potential recession in the final quarter of the year.

Tuesday’s economic data slate in Europe includes the final PMI readings as well as producer prices for October.

Data already released showed that French industrial production fell 0.3% on the month in October, and the eurozone composite PMI for November is expected to show that economic activity in the region remains firmly in contraction territory.

That said, eurozone PPI is expected to rise just 0.2% on the month in October, an annual fall of 9.5%, following on from the bloc’s CPI tumbling to 2.4% last month from above 10% a year earlier.

The European Central Bank can take further interest rate hikes off the table given a "remarkable" fall in inflation and policymakers should not guide for rates to remain steady through mid-2024, ECB board member Isabel Schnabel, a known hawk, said earlier Tuesday.

The Reserve Bank of Australia kept interest rates on hold earlier Tuesday, after hiking rates by 25 basis points in October, citing the need for more macroeconomic data to spur another rate decision.

Airbus delivers 64 aircraft in November

In corporate news, Airbus (EPA:AIR) stock fell 0.7% after industry sources indicated the European planemaker delivered 64 aircraft in November, down 6% from the same month of 2022, to bring the total so far this year to 623 units.

If confirmed, the tally leaves Airbus needing 97 deliveries in December to reach its full-year target of 720 deliveries, compared with an average of 93 December deliveries for the past three years.

Crude inches higher; Middle East tensions grow

Oil prices edged higher Tuesday amid continued tension in the Middle East, but remained near five-month lows after disappointing OPEC+ output cuts.

By 03:15 ET, the U.S. crude futures traded 0.8% higher at $73.59 a barrel, while the Brent contract climbed 0.8% to $78.64 a barrel.

Fears of a potential escalation in the Israel-Hamas conflict have grown after the U.S. held Iran responsible for an attack on U.S. vessels in the Red Sea by Houthi forces. But traders remained wary of pricing a significant risk premium into oil over the conflict, given that it has so far had a minimal impact on Middle Eastern oil supplies.

The Organization of Petroleum Exporting Countries and allies, a group known as OPEC+, agreed to an additional voluntary output reduction of 900,000 barrels per day last week, less than had been originally expected.

Additionally, gold futures rose 0.6% to $2,055.15/oz, while EUR/USD traded 0.2% higher at 1.0811.

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