European Stocks Cautious Amidst Political Uncertainty and Economic Concerns

European stocks showed caution on Tuesday, influenced by political uncertainty in the Netherlands and concerns about global economic growth. The EuroStoxx 50 declined by 0.29% to 5,340 points, continuing its weak start to June. The OECD's downgraded forecast for global economic growth also contributed to investor caution ahead of the European Central Bank's expected interest rate decision on Thursday. UBS shares rose by 2.6% after a buy recommendation from Jefferies, standing out in the banking sector. Conversely, HSBC shares fell by 1.3% following a downgraded rating from Bank of America. ING shares also experienced a decline of 1.5% amid political uncertainty in the Netherlands, where the government coalition collapsed over migration policy, potentially leading to new elections. Kering shares fell by 1.1% as the company prepares to be replaced in the EuroStoxx by Rheinmetall. The materials sector was the worst performer in Europe, with Anglo American and Rio Tinto shares falling by up to 2.4%. Pennon Group shares also fell by 2.8% after reporting a pre-tax loss for the past fiscal year.